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## Limitations of Decision Trees The technique also has some limitations: - The information gathered when using the technique is not exact. It is based on probabilities which are often estimated - Decisions are not always concerned with quantities and probabilities. For example, they often involv...

## Limitations of Decision Trees The technique also has some limitations: - The information gathered when using the technique is not exact. It is based on probabilities which are often estimated - Decisions are not always concerned with quantities and probabilities. For example, they often involve people and are influenced by legal constraints or people's opinions. These factors cannot always be shown by numerical values. Qualitative data may also be important. - Time lags often occur in decision making. By the time a decision is finally made, some of the numerical information may be out of date. - The process can be quite time-consuming, using up valuable business resources. However, computerised decision-making models can be used to analyze decision trees which can save some time. - It is argued that decision makers, in an attempt to encourage a particular course of action, may manipulate the data. For example, a manager might be "biased" when attaching probabilities to certain outcomes. This will change the final results. - Decision trees are not able to take into account the dynamic nature of business. For example, a sudden change in the economic climate might make a decision based on a decision tree outdated.