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Assignment Nos. 1 Decision Tree Analysis

This document is an assignment from Professor Mario Brillante Wesley C. Cabotage at New Era University College of Accountancy School of Management. It was submitted by Patricia Nicole Y. Cruz on September 2, 2021 for Section 2BSA-4 from 5:30-7:00 PM. The assignment contains 4 questions about decision trees, their importance in daily life, and their advantages and disadvantages.

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Patricia Cruz
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189 views4 pages

Assignment Nos. 1 Decision Tree Analysis

This document is an assignment from Professor Mario Brillante Wesley C. Cabotage at New Era University College of Accountancy School of Management. It was submitted by Patricia Nicole Y. Cruz on September 2, 2021 for Section 2BSA-4 from 5:30-7:00 PM. The assignment contains 4 questions about decision trees, their importance in daily life, and their advantages and disadvantages.

Uploaded by

Patricia Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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New Era University.

College of Accountancy
SCHOOL OF MANAGEMENT
No.9 Central Avenue, New Era, Quezon City 1107 Philippines
Tel. Nos. (632) 8981-4227/Fax: (632) 8981-4240
E mail add: [email protected]

Title of the Activity:


Assignment Nos. 1 Decision Tree Analysis

Submitted by: Submitted to:


Patricia Nicole Y. Cruz Prof. Mario Brillante Wesley C. Cabotage

Date Submitted: September 2, 2021

Section Schedule: 2BSA-4(TF-5:30-7:00 PM)


Please answer the following questions and submit on the deadline date.

1. What is a decision tree?


A decision tree is a mapping representation of the potential implications of a set
of related decisions. A person or organization can evaluate alternative actions based on
their costs, probability and benefits to see which one is the better. Informally, they can be
used to generate discussion, or theoretically, they can be used to develop an algorithm
that predicts the best choice.

Starting from a single node, a decision tree will branch out into possible outcomes.
They all lead to other nodes, which in turn lead to further possibilities. Furthermore, it
resembles a tree.

2. Highlight the importance of a decision in your daily life.


As a human being, we are constantly surrounded with options and We must make
choices and decisions at every step along the journey because of the unforeseen nature
of life. No matter how successful or unsuccessful we are in life, whether it's personal,
professional, or social, it's because towards the choices we make.

Given that decision-making only becomes necessary when there are other
alternatives, it is a method that must be used consciously and diligently in order to solve
the problem that has already arisen, or in order to find the possible and feasible solutions
that we may imagine during our daily interactions related to our personal or professional
lives. Determining the seriousness and importance of circumstances that arise over a
given day or period of time involves categorizing the decision-making process according
to the urgency and importance of the challenges and misfortunes at hand.
3. Explain the advantages and disadvantages of a decision tree.
The advantage of a decision tree algorithm is that it is easy to comprehend,
interpret, and visualize because the concept is commonly adopted in our daily lives and
the outcome can be simply processed by humans. It may be used for both regression and
classification problems, and it can handle both continuous and categorical data. Decision
Tree does not require feature scaling (standardization and normalization) because it uses
a rule-based technique rather than distance calculation. And furthermore, missing values
in the data have few impacts on the decision tree process.

In contrary to that, a little change in the data in a decision tree can create a huge
change in the structure of the decision tree, resulting in instability. When compared to
other methods, some operations might be inherently more complicated, requiring more
time for training the system, and training is costly because to the complexity and time
required. When it comes to using regression and predicting continuous values, the
Decision Tree method performs poorly.

4. What is the importance of a decision tree?


Decision trees are useful tools for supporting you in deciding between different
alternatives. They constitute a highly effective context within which you can set out
possibilities and analyze the implications of those options. They also assist you in
developing a balanced picture of the risks and advantages of each feasible course of
action.
Reference/s:
K, D. (2019, May 27). Dhiraj K. Retrieved from Top 5 advantages and disadvantages of
Decision Tree Algorithm: https://dhirajkumarblog.medium.com/top-5-advantages-
and-disadvantages-of-decision-tree-algorithm-428ebd199d9a
Lucidchart. (n.d.). Retrieved from What is a Decision Tree Diagram:
https://www.lucidchart.com/pages/decision-tree
MindTools. (n.d.). Retrieved from Decision Trees:
https://www.mindtools.com/dectree.html
Schrader, J. (2015, May 30). Psychology Today. Retrieved from The Importance of
Learning How to Make Decisions: https://www.psychologytoday.com/us/blog/in-
flux/201505/the-importance-learning-how-make-decisions
Taxguru. (2019, November 22). Retrieved from Importance of Decision Making In Life:
https://taxguru.in/chartered-accountant/importance-decision-making-life.html

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