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Decision Tree Algorithm

The document introduces the Decision Tree Algorithm, a supervised learning method used for classification and regression tasks, characterized by its tree-like structure. It explains the algorithm's functionality, advantages, and disadvantages, highlighting its predictive power and real-world applications such as credit risk assessment and fraud detection. Additionally, it discusses the importance of ensemble methods to mitigate issues like overfitting and instability.

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G016 Bobade Samruddhi
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0 views8 pages

Decision Tree Algorithm

The document introduces the Decision Tree Algorithm, a supervised learning method used for classification and regression tasks, characterized by its tree-like structure. It explains the algorithm's functionality, advantages, and disadvantages, highlighting its predictive power and real-world applications such as credit risk assessment and fraud detection. Additionally, it discusses the importance of ensemble methods to mitigate issues like overfitting and instability.

Uploaded by

G016 Bobade Samruddhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Decision Tree Algorithm:

Welcome to the Machine Learning Fundamentals Series. This


presentation introduces the Decision Tree Algorithm, a core
concept in supervised learning.

by Samruddhi Bobade
What is a Decision Tree?
Supervised Learning Tree-like Structure
A decision tree is a It mimics a tree, with nodes
supervised learning for features, branches for
algorithm. It is used for both decisions, and leaves for
classification and regression outcomes. For example,
tasks. predicting customer churn
involves demographics.

Predictive Power
It helps predict outcomes by navigating through decisions.
Think of it as a flowchart for data analysis.
How Does it Work?
1 Recursive Splitting
The algorithm splits data based on feature values. This process is
done recursively.

2 Best Split Selection


It uses criteria like Information Gain or Gini Impurity. These
metrics select the most effective splits.

3 Information Gain
This measures the reduction in entropy after a split. It aims to
maximize homogeneity.

4 Gini Impurity
This measures the probability of incorrect classification. Lower
Gini impurity is better.
Building a Decision Tree
Select Best Attribute
Use Attribute Selection Measures (ASM). This
identifies the most impactful feature.

Make Decision Node


The selected attribute becomes a decision node. It
divides the dataset.

Repeat Process
Apply this splitting process to each child node.
Continue until leaves are formed.
Advantages of Decision Trees
Easy to Interpret
Decision trees are simple to understand. Their visual nature aids comprehension.

Handles Mixed Data


They work with both numerical and categorical data types. This versatility is a key strength.

Non-Parametric
No assumptions are made about data distribution. This makes them flexible for various datasets.
Disadvantages of Decision Trees
Overfitting Risk Instability Solutions

Decision trees can perform poorly Small changes in the data can lead Ensemble methods like Random
on new data. They tend to learn to different trees. This makes them Forests are often used. Gradient
noise from the training data. somewhat unstable. Boosting also helps mitigate these
issues.
This happens when the model They also bias towards features
becomes too specific. with more levels. These methods combine multiple
trees for better results.
Real-World Applications
1 Credit Risk
Predicting loan defaults. Assess applicant's creditworthiness.

2 Medical Diagnosis
Identifying diseases from symptoms. Aids in patient care decisions.

3 Fraud Detection
Flagging suspicious transactions. Secures financial operations.

4 Customer Segmentation
Grouping customers by behavior. Tailor marketing strategies.

In the banking industry, decision trees have successfully reduced losses by


20% by accurately assessing credit risk and detecting fraudulent activities.
Conclusion

1
Powerful Algorithm
Decision trees are versatile and effective. They are a fundamental ML tool.

2
Easy to Use
They are simple to understand and implement. This makes them accessible.

3
Ensemble Solutions
Their limitations are addressed by ensemble methods. These enhance performance.

4
Future Trends
Look for integration with deep learning. This will create hybrid models.

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