This book shows you how to build decision tree models to predict a categorical target and how to build regression tree models to predict a continuous target. Some examples are presented. One example shows how to build a decision tree model to predict response to direct mail. In this example, the target variable is binary, taking on the values response and no response. Other example shows how to build a regression tree model to forecast a continuous (but interval-scaled) target often used in the auto insurance industry, namely loss frequency . Loss frequency can also be modeled as a categorical target variable if it takes on only a few values but in this example it is treated as a continuous target.
Successive chapters present examples that clarify the application of the tree models. The examples are solved step by step with SAS Enterprise Miner in order to make easier the understanding of the methodologies used.
Successive chapters present examples that clarify the application of the tree models. The examples are solved step by step with SAS Enterprise Miner in order to make easier the understanding of the methodologies used.