Reliability and Decision Theory

Whenever the decision points are noticed to be consistent and dependable then it implies that such idea reflects a desirable level of reliability (Kerzner & Kerzner, 2017). Applications of decision trees may vary accordingly. For instance, they can be used for making evaluating personal choices. Decision trees are also used by managers to monitor the viability of a project. Personal Decision Tree for Buying an Asset Fig. In this case, an individual can go ahead to purchase that car, house or pay the school fees. The decision to officially launch an idea is a very vital step in decision making. This is because, it will generally affect all the successive process in terms of financial stability as well the availability of surplus income to manage other commitments.

For instance, by paying school fees or purchasing a car, an individual must also evaluate his or her basic needs and how they will be satisfied without being restrained. As it can be seen from the above illustration, a decision tree follows a definite algorithm in order to demonstrate reliability and validity of information (Cleden, 2017). Lastly, an individual must decide whether to outsource funds or just to work within the limits of the available funds. An evaluation of the chance points reveals the risky decisions that may hinder or facilitate this project. Here, the first chance is the decision to pursue the project with limited resources. This is because, the project may stall midway if the resources are all used up.