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- Introduction.

- Types of Decision Trees.

1. Categorical Decision Tree

2. Continues Decision Tree

- Terminology related to Decision Tree

- How decision tree works?

- Entropy

- Information Gain

Classification or Regression can be categorized in two steps that is learning and predicting. In the first stage learning, the algorithm will learn from the training data and predict the unseen data in the second stage that is prediction. For these prediction part we are having plenty of algorithms, in all these algorithms Decision tree algorithm has its own value and demand in these set of algorithms because of its high interpret-ability and systematic representation.

Decision tree comes under the family of supervised learning algorithms. unlike other algorithms decision tree has capability to handle classification and regression based problems.

The goal of decision tree helps to find the value or class of the target variable from the algorithm which has learned by the prior data or training data.

In general Decision tree has two types:

If a target variable contains categorical column, which includes binary levels or multi level uses categorical Decision Tree.

If a target variable contains continues values(might be in decimals) uses continues Decision tree.

Let me take a example and explain you clearly:-

If they are handling a problem like loan payments. Customer will be paying his loan amount or not. That is here we are trying to predict (yes/no). This comes under problem of Categorical Decision Tree. In second stage we have to predict, how much amount will be payed to bank, as here the target variable is continues it comes for Continues Decision tree.

The decision of making strategic splits affects on the accuracy of the model. The decision criteria is different for classification and regression.

It uses entropy or Information gain to select the root node and from there the splitting starts. For the next split it selects the node which has low entropy or high Information gain. Entropy helps in identifying the randomness of the model. While coming to pruning part as Machine Learning expert we should decide the pruning part. That is up-to which part of the tree have to pruned. If we prune too much model will be affected with under fitting or If we allowed to make more splits, model will be suffered with over fitting.

Entropy is the measure of randomness. If we are having the higher entropy, it is difficult to draw conclusions out of that information. So, that always we should select entropy that is having less value.

From the above graph, we can clearly say that H(X), the entropy is zero when the probability value is 0 or 1. We can find the maximum entropy when the probability value is 0.5. That is the reason why, we can't make any conclusion, when we have high entropy.

In simple terminology we can say Information gain is (Entropy before split) - (Entropy after split). Information Gain, or IG for short, measures the reduction in entropy or surprise by splitting a dataset according to a given value of a random variable.

A larger information gain suggests a lower entropy group or groups of samples, and hence less surprise.

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