What Is A Decision Tree Algorithm?
Tags: Machine Learning, Business Strategy, Algorithms, Big Data, Data Science

Guest written by Rebecca Njeri!

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What is a Decision Tree?

Let’s start with a story. Suppose you have a business and you want to acquire some new customers. You also have a limited budget, and you want to ensure that, in advertising, you focus on customers who are the most likely to be converted.

How do you figure out who these people are? You need a classification algorithm that can identify these customers and one particular classification algorithm that could come in handy is the decision tree. A decision tree, after it is trained, gives a sequence of criteria to evaluate features of each new customer to determine whether they will likely be converted.

To start off, you can use data you already have on your existing customers to build a decision tree. Your data should include all the customers, their descriptive features, and a label that indicates whether they converted or not.

The idea of a decision tree is to divide the data set into smaller data sets based on the descriptive features until you reach a small enough set that contains data points that fall under one label.

Each feature of the data set becomes a root[parent] node, and the leaf[child] nodes represent the outcomes. The decision on which feature to split on is made based on resultant entropy reduction or information gain from the split.

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Classification problems for decision trees are often binary — True or False, Male or Female. However, decision trees can also be used to solve multi-class classification problems where the labels are [0, …, K-1], or for this example, [‘Converted customer’, ‘Would like more benefits’, ‘Converts when they see funny ads’, ‘Won’t ever buy our products’].

Using Continuous Variables to Split Nodes in a Decision Tree

Continuous features are turned to categorical variables (i.e. lesser than or greater than a certain value) before a split at the root node. Because there could be infinite boundaries for a continuous variable, the choice is made depending on which boundary will result in the most information gain.

For example if we wanted to classify quarterbacks versus defensive ends on the Seahawks team using weight, 230 pounds would probably be more appropriate as a boundary than 150 pounds. Trivial fact: the average weight of a quarterback is 225 pounds, while that of a defensive end is 255 pounds.

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​What is Entropy/Information Gain?

Shannon’s Entropy Model is a computational measure of the impurity of elements in the set. The goal of the decision tree is to result in a set that minimizes impurity. To go back to our story, we start with a set of the general population that may see our ad. The data set is then split on different variables until we arrive at a subset where everyone in that subset either buys the product or does not by the product. Ideally, after traversing our decision tree to the leaves, we should arrive at pure subset — every customer has the same label.

Advantages of Decision Trees

Decision trees are easy to interpret.

To build a decision tree requires little data preparation from the user- there is no need to normalize data

Disadvantages of Decision Trees

Decision trees are likely to overfit noisy data. The probability of overfitting on noise increases as a tree gets deeper.

Pruning

Pruning is a method of limiting tree depth to reduce overfitting in decision trees. There are two types of pruning: pre-pruning, and post-pruning.

Pre-pruning

Pre-pruning a decision tree involves setting the parameters of a decision tree before building it. There a few ways to do this:

Set maximum tree depth

Set maximum number of terminal nodes

Set minimum samples for a node split:

Controls the size of the resultant terminal nodes

Set maximum number of features

Post-pruning

To post-prune, validate the performance of the model on a test set. Afterwards, cut back splits that seem to result from overfitting noise in the training set. Pruning these splits dampens the noise in the data set.

*Post-pruning may result in overfitting the model

*Post-pruning is currently not available in Python’s scikit learn, but it’s available in R.

​Ensembles

Creating ensembles involves aggregating the results of different models. Ensemble decision trees are used in bagging and random forests, while ensemble regression trees are used in boosting.

Bagging/Bootstrap aggregating

Bagging involves creating multiple decision trees each trained on a different bootstrap sample of the data. Because bootstrapping involves sampling with replacement, some of the data in the sample is left out of each tree.

Consequently, the decision trees created are made using different samples which solves the problem of overfitting to the training sample. Ensembling decision trees in this way helps reduce the total error because variance of the model continues to decrease with each new tree added without an increase in the bias of the ensemble.