Decision trees help in understanding complex issues and setting the course of actions aiming to solve problems. They enable the use of the actual insights to plan the following steps, make conclusions, and develop predictions.

The origin of decision tree name

The name came from the shape this diagram takes: it is usually depicted as an upright or a horizontal diagram with multiple branches out.  Every branch stands for a possible decision, effect, or reaction. 

The benefits of decision diagrams

By displaying decisions, effects, and reactions in a sequence of stages and steps, decision trees give people and organizations an easy-to-understand way to comprehend and predict the potential effects of their decisions and outcomes that may occur. They are useful in risk management and support decision-making processes.