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\nLimitations of Decision Trees in Business Investment Decision Making\n

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\nThis video explores the limitations that businesses face when using decision trees to evaluate investment projects and decisions. The advantages of using decision trees are discussed, including their ability to represent available...\nThis video explores the limitations that businesses face when using decision trees to evaluate investment projects and decisions. The advantages of using decision trees are discussed, including their ability to represent available choices, events, and outcomes clearly. However, the limitations are also highlighted, such as the flawed probabilities attached to the data, difficulty acquiring necessary data, and failure to take external factors into account. The video also uses a neat little concept called \"the flaw of averages\" to demonstrate how systematic decision-making processes can cause problems for businesses.\n
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Resource Details

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Curator Rating
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Educator Rating
Not yet Rated
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Media Length
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8:23
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Grade
Higher Ed
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Subjects
Social Studies & History
3 more...
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Media Type
Instructional Videos
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Source:
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\nKnowMo Business\n\n
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Date
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2018
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Language
English
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Audiences
For Teacher Use
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Usage Permissions
Fine Print: Educational Use
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Additional Materials

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\" data-title=\"Get Full Access\" data-container=\"body\" rel=\"popover\" tabindex=\"0\" href=\"/subscription/new\">Video Transcript\n
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Concepts

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business, trees, data, chance, averages, factors
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Additional Tags

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a-level, section, quant, methods, 1.2.4, limitations, of, decision, decision tree, senior managers, initial cost, lecture video, net gain, investment decision, investment project, businesses face, project, approach, investment, outcome, calculations, problems, loss, lots, businesses, account, performance, expected, failure, taking, represent, means
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Classroom Considerations

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Best For: Explaining a topic
Video is ad-free
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Educator Ratings

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\n\" data-title=\"Get Full Access\" data-container=\"body\" rel=\"popover\" tabindex=\"0\" aria-label=\"Play video: Limitations of Decision Trees in Business Investment Decision Making\" href=\"/subscription/new\">\"Limitations\n\n
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