Where are decision tables used?
In the context of a financial institution, decision tables can be used to streamline the loan approval process by automating the decision-making steps based on various conditions.
Letβs take an example where a bank is processing loan applications and needs a systematic approach to evaluate eligibility. A decision table is designed to consider multiple factors such as credit score, income, and debt-to-income ratio.
Conditions
Conditions in a decision table represent the criteria or factors used to evaluate input values. They are defined by the business users in the decision table, including ranges for credit score, income levels, and acceptable debt-to-income ratios.
Results
Results are the outcomes corresponding to specific conditions. The decision table compares the input values with the conditions and returns the corresponding user-defined results, indicating whether an application is approved, denied, or requires further review.
Conditions |
Results |
||
Credit score |
Income |
Debt-to-income ratio |
Eligibility |
> 700 |
High |
Low |
Approved |
600 - 700 |
Medium |
Medium |
Further review |
< 600 |
Low |
High |
Denied |
The decision table gives a clear, visual representation of various scenarios, making it easy for the loan processing system to automatically assess and decide on loan applications.