What diagram is used to map decisions and potential outcomes graphically to aid decision making?

• A. Market Development
• B. Decision Tree
• C. Dividends
• D. Economies of Scale

Answer: (B)

A decision tree is a diagram that maps decisions and potential outcomes graphically to aid decision making. It lays out each choice at a decision point and branches to possible results, often with probabilities and payoffs, so you can compare options and compute expected values or risks. This visual, step-by-step layout helps you see how one choice leads to different paths and outcomes, making it easier to pick the option with the best anticipated result. The other terms aren’t diagrams: market development is a growth strategy, dividends are profit payments to shareholders, and economies of scale describe cost advantages from producing more.