Consider the following information on a decision process used within an organisation to grant salesperson commissions:

Consider the following information on a decision process used within an organisation to grant salesperson commissions: 

1. If fewer than 400 units are sold, the salesperson’s commission is 1% of total sales. 
2. If between 400 and 499 units are sold, the salesperson’s commission is 2% of total sales. 
3. If 500 or more units are sold and the salesperson has been with the company for more than one year, the salesperson’s commission is 4% of total sales. 
4. If 500 or more units are sold and the salesperson has been in the company for one year or less, his or her commission is 3% of total sales. 

In addition to the above commission scheme, an additional commission of 0.5% of total sales is added if more than 80% of the sales have been collected by the salesperson. Draw an extended decision table representing the above information. Compress the table and convert it to a decision tree.

Solution:

For this particular use case, let us assume three decision variables: 

1. Number of unit sold (Less then 400, Between 400 and 499, and More then 499), 
2. Length of employment (Less than one, More than one year), and 
3. Sales percentage (More than 80%, Less than 80%) 

Based on these three decision variables and information provided in the question (points 1, 2, 3 and 4) we can construct decision table: 

Decision Table:

Based on above decision table, we can construct decision tree as follows:

Decision Tree: