Decision trees (DTs) and influence diagrams (IDs) are used in many project management decisions. You are meeting with your manager to outline the costs and benefits of alternative projects that your firm may initiate. Discuss the advantages and disadvantages of DTs and IDs, and present an argument for which you would use.
Decision trees are diagrams that show the sequence of interrelated decisions and the much-anticipated effects of choosing one alternative over the other. Essentially, more than one choice or option is available when you are faced with a decision from a risk of event. The available choices are then weighed for better decision making. Influence diagrams on the other hand are a conceptual modeling tool that graphically represent the causal relationships between decisions, external factors, uncertainties and outcomes. This paper will examine the merits and demerits of this mechanisms, that is, Decision trees and Influence diagrams to the organization management with regards to decision making.