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A decision table is a table of all possible conditions and corresponding actions. It is used to show complicated logic without forgetting any combination of conditions. 

Decision tables help in testing by listing all possible input conditions.

A decision table is a good way to deal with combinations of things (e.g. inputs). This technique is sometimes also referred to as a ’cause-effect’ table.

The reason for this is that there is an associated logic diagramming technique called ’cause-effect graphing’ which was sometimes used to help derive the decision table (Myers describes this as a combinatorial logic network [Myers, 1979]). However, most people find it more useful just to use the table described in [Copeland, 2003].

Decision tables provide a systematic way of stating complex business rules, which is useful for developers as well as for testers.

Decision tables can be used in test design whether or not they are used in specifications, as they help testers explore the effects of combinations of different inputs and other software states that must correctly implement business rules.

It helps the developers to do a better job can also lead to better relationships with them. Testing combinations can be a challenge, as the number of combinations can often be huge. Testing all combinations may be impractical if not impossible. We have to be satisfied with testing just a small subset of combinations but making the choice of which combinations to test and which to leave out is also important. If you do not have a systematic way of selecting combinations, an arbitrary subset will be used and this may well result in an ineffective test effort.

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