Chapter 1: Introduction to Tree-Structured Models
Introduction
“Sometimes you make the right decision, sometimes you make the decision right.”
–Phil McGraw
A decision tree has many analogies in real life. In decision analysis, a tree can be used to represent decisions and decision making visually and explicitly. As the name suggests, it uses a tree-like model of decisions.
The adjective decision in decision trees is a curious one, and misleading. In the 1960s, originators of the tree approach described the splitting rules as decision rules. The terminology remains popular. This is ill-fated because it inhibits the use of ideas and terminology from decision theory. The term decision tree is used in decision theory to depict a series of decisions ...
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