The term "Decision Trees" is particularly at home in the fields of Artificial Intelligence, Big Data and Smart Data, as well as Digital Transformation. Decision Trees, or "Entscheidungsbäume" in German, are a simple and clear tool for visually representing decisions with many possibilities. They are very popular when companies want to discover from large amounts of data how best to act or to optimise certain processes.
A decision tree works like a real tree diagram: At the start, there's a question or criterion. Depending on how you answer, the tree branches further. It proceeds step-by-step through different decisions until a clear recommendation or outcome is reached at the end.
For example: An online shop wants to know if a customer will purchase a particular product. The decision tree first checks if the customer has visited the product page. If so, the tree then asks if the customer has added the product to their basket. Depending on the answer, the decision path continues until, at the end, there is an assessment of the probability of purchase.
Decision trees are understandable tools in practice for making smart decisions from data.
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