Question

Describe a specific example of the use of decision trees in business context. For example, decision trees can be used to forecast home buyer’s willingness to close a deal.

Directions:

Explain what type of data (specific columns) can be used in the example you will find and what type of trees (classification or regression) will be used.

Answer 1

--> The above example is a decision tree to determine whether to give a loan or not

      for a person based on data.

--> Columns are:

      Income Range : categorical variable

      Criminal Record : categorical variable

      Years in current job : real variable

      Makes credit card payments : categorical variable

--> Here Classification trees are used.