Book Image

Predictive Analytics Using Rattle and Qlik Sense

By : Ferran Garcia Pagans, Fernando G Pagans
Book Image

Predictive Analytics Using Rattle and Qlik Sense

By: Ferran Garcia Pagans, Fernando G Pagans

Overview of this book

Table of Contents (16 chapters)
Predictive Analytics Using Rattle and Qlik Sense
Credits
About the Author
About the Reviewers
www.PacktPub.com
Preface
Index

Decision Tree Learning


Decision Tree Learning uses past observations to learn how to classify them and also try to predict the class of a new observation. For example, in a bank, we may have historical information on the granting of loans. Usually, past loan information includes a customer profile and whether the customer defaulted or not. Based on this information, the algorithm can learn to predict whether a new customer will default.

We usually represent a Decision Tree as we did in the following diagram. The root node is at the top, and the leaves of the tree are at the bottom, the leaves represent a decision. In order to create rules from a tree, we need to start from the root node, and then we work downwards, towards the leaves. The following diagram represents a sample Decision Tree:

After studying the preceding diagram of a Decision Tree, we can obtain these rules:

If Purpose = 'Education' AND Sex = 'male' AND Age > 25 Then No Default
If Purpose = 'Education' AND Sex = 'male' AND...