Provide an example of any problem requiring a decision tree

Provide an example of any problem requiring a decision tree for a solution

Solution

An example of a problem that will require a decision tree for a solution is-

A company has to decide whether it has to bid for a contract or not. If it bids for that contract it will estimate the cost of preparing the bid. Then the bid will either be shortlisted or not. If it is selected in the short list for consideration by the contractors they will have to provide further detailed information to them which will add to their cost of bidding. On providing this information their bid will either be selected or rejected. If selected they will have to estimate the bid price based on the material and labour cost. They can make two to three estimates of the bid procesand consider each of them for a decision making. This series of decionsde to be taken will require a decision tree method for solutions.