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Massive text one (A decision tree is a quantitative method used to help managers make decisions. This is based on probablities and numerical values alone. Mark wants to maximise his profits, as inflation rates go higher, therefore the decision tree can tell us which one can give Kentmere hotel the maximum profit they can get, which would be Project A which at the end can give £1 million, whereas project B can only get upto £850,000, therefore Mark could choose Project A, for a much higher revenue. Though decision tree also has the initial cost for the individual projects for which project A has nearly double the initial investment value than of Project B. So looking at this data Kentmere could still pick project A as at the end they would be left with 100,000 more than what project B could offer. Another usefulness of the decision trees are that they can also take into account that the project may not do as well as they can be predicted to, which then helps tell the managers which plan has a higher risk to it using probablities, like for this instance, if they start Project A, they could either end up with a profit of £700,000 or they can have a loss of £200,000, whereas if they choose to go with Project B, as the diagram suggests, they will 100% make a profit, even if the profit is a low amount. This helps the managers decide if they want to take the risk or play it safe to make a profit slowly. )

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Massive text 2 (A decision tree is a quantitative method used to help managers make decisions. This is based on probablities and numerical values alone. Mark wants to maximise his profits, as inflation rates go higher, therefore the decision tree can tell us which one can give Kentmere hotel the maximum profit they can get, which would be Project A which at the end can give £1 million, whereas project B can only get upto £850,000, therefore Mark could choose Project A, for a much higher revenue. Though decision tree also has the initial cost for the individual projects for which project A has nearly double the initial investment value than of Project B. So looking at this data Kentmere could still pick project A as at the end they would be left with 100,000 more than what project B could offer. Another usefulness of the decision trees are that they can also take into account that the project may not do as well as they can be predicted to, which then helps tell the managers which plan has a higher risk to it using probablities, like for this instance, if they start Project A, they could either end up with a profit of £700,000 or they can have a loss of £200,000, whereas if they choose to go with Project B, as the diagram suggests, they will 100% make a profit, even if the profit is a low amount. This helps the managers decide if they want to take the risk or play it safe to make a profit slowly. )