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What is a Decision Tree Algorithm?
● Decision tree learning is one of the predictive modelling
approaches used in statistics, data mining and machine
learning.
● It uses a decision tree to go from observations about an item
to conclusions about the item's target value.
● Tree models where the target variable can take a discrete set
of values are called classification trees
● Decision trees where the target variable can take continuous
values are called regression trees
● Decision trees are among the most popular machine learning
algorithms given their intelligibility and simplicity to use
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Using demographic data to find Assessing prospective growth Serving as a support tool in several
prospective clients opportunities fields
Another application of decision trees is in the use of One of the applications of decision trees involves evaluating Lenders also use decision trees to predict the probability of a
demographic d to find prospective clients. They can help prospective growth opportunities for businesses based on customer defaulting on a loan, by applying predictive model
in streamlining a marketing budget and in making informed historical data. Historical data on sales can be used in generation using the client’s past data. The use of a decision
decisions on the target market that the business is decision trees that may lead to making radical changes in the tree support tool can help lenders in evaluating the
focused on. strategy of a business to help aid expansion and growth creditworthiness of a customer to prevent losses.
Decision Tree Algorithm
Advantages Disadvantages
Easy to explain and perfect for visual representation Generally it gives low prediction accuracy compared to
other algorithms
The data ends up in distinct groups that are often Trees fail to deal the linear relationship with input and
easier to understand and infer output
What is a Random Forest?
● Random forest is a supervised learning algorithm.
The "forest" it builds, is an ensemble of decision
trees, usually trained with the “bagging” method.
● Random forest, like its name implies, consists of a
large number of individual decision trees that
operate as an ensemble. Each individual tree in the
random forest spits out a class prediction and the
class with the most votes becomes our model’s
prediction
regression task.
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It provides higher
accuracy through cross
validation.
Advantages Disadvantages
Work well for both classification and regression Do good job at classification, but not for regression with
problems same effectiveness
Power to handle data sets with higher dimensions Large number of trees in large data sets make algorithm
making it suitable for complicated tasks too slow for processing
It has an effective method for estimating missing data Difficult to interpret , act like black boxes
and maintains accuracy
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Analysis
Software Results
Algorithms
Results are obtained by
1. Decision tree coding with the decision tree
2. Random Forest algorithm as well as random
forest algorithm