DecisionTrees—WhatAreThey-SASSupport.PDFVIP

Decision Trees— What Are They? Introduction 1 Using Decision Trees with Other Modeling Approaches 5 Why Are Decision Trees So Useful? 8 Level of Measurement 11 Introduction Decision trees are a simple, but powerful form of multiple variable analysis. They provide unique capabilities to supplement, complement, and substitute for • traditional statistical forms of analysis (such as multiple linear regression) • a variety of data mining tools and techniques (such as neural networks) • recently developed multidimensional forms of reporting and analysis found in the field of business intelligence 2 Decision Trees for Business Intelligence and Data Mining: Using SAS Enterprise Miner Decision trees are produced by algorithms that identify various ways of splitting a data set into branch-like segments. These segments form an inverted decision tree that originates with a root node at the top of the tree. The object of analysis is reflected in this root node as a simple, one-dimensional display in the decision tree interface. The name of the field of data that is the object of analysis is usually displayed, along with the spread or distribution of the values that are contained in that field. A sample decision tree is illustrated in Figure 1.1, which shows that the decision tree can reflect both a continuous and categorical object of analysis. The display of this node reflects all the data set records, fields, and field values that are found in the object of analysis. The discovery of the decision rule to form the branches or segments underneath the root node is based on a method that extracts the relationship between the object of analysis (that serves as the target field in the data) and one or more fields that serve as in