Which of the following is a decision-analysis technique used to represent choices and consequences with branches and nodes?

• A. Decision Tree
• B. Payoff Matrix
• C. Process Flow Chart
• D. Gain Chart

Answer: (A)

Representing choices and consequences with branches and nodes is the hallmark of a decision tree. In a decision tree, you start from a starting point (a decision node), create branches for each possible action, and then continue with additional decision or chance nodes that lead to outcomes. This structure lets you map sequential decisions and uncertain events, visualize how different choices unfold, and compute expected values or overall payoffs to determine which path is most favorable. The other options fit different formats: a payoff matrix presents outcomes in a table rather than a branching diagram; a process flow chart shows steps in a process rather than decision branches; and a gain chart focuses on gains without representing the full sequence of decisions and their consequences. Therefore, the technique described is a decision tree.