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The document discusses decision trees which are diagrams that show possible outcomes of decisions and their probabilities. It describes the steps of decision analysis, types of decision trees, and applications of decision trees. Some key advantages are that decision trees are easy to understand without statistics knowledge and require less data preparation than other methods.

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Rohit
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13 views2 pages

CBCV

The document discusses decision trees which are diagrams that show possible outcomes of decisions and their probabilities. It describes the steps of decision analysis, types of decision trees, and applications of decision trees. Some key advantages are that decision trees are easy to understand without statistics knowledge and require less data preparation than other methods.

Uploaded by

Rohit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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**Decision Tree Summary:**

**What is a Decision Tree?**

- A decision tree is a picture of different choices for solving a problem and finding the best action. It has
nodes (tests) and branches (outcomes).

**How Does it Work?**

- It's like drawing a map from left to right, with nodes splitting into different paths. There are three types
of nodes: root (divides into sets), decision (squares, show different possibilities), and terminal (final
outcomes).

**Steps of Decision Analysis:**

1. Identify the problem.

2. Create a tree with solutions and outcomes.

3. Include variables and their chances.

4. Assign rewards based on possibilities.

5. Find the best solution for each chance.

**Types of Decision Trees:**

1. **Categorical:** Splits into categories like yes or no.

2. **Continuous:** Deals with constant targets using variables like age or income.

**Applications:**

- Assessing business growth, finding customers with demographic data, supporting decisions in various
fields (finance, healthcare, etc.).

**Advantages of Decision Trees:**


1. Easy to read and understand without needing statistical knowledge.

2. Requires less data preparation and cleaning compared to other methods.

Remember these key points, and you'll do great on your exam! Good luck!

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