Answer intial Post word and then Respond to two peers dicussion listed below
Decision tree is a most important part in Decision Analysis. Please refer to this site to see what is the Decisionhttps://www.elegantjbi.com/blog/what-is-the-decision-tree-analysis-and-how-does-it-help-a-business-to-analyze-data.htm Tree Analysis and how does it help a business to analyze data? Then give a real world example showing how to use decision tree for more intelligent Decision Analysis?
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(Peer 1 GB)
After studying this weeks lesson on decision tree’s it had me asking “what is the difference between a decision tree and a flow chart. Short answer is decision trees are used in business as a decision making framework where flow charts describe tasks in a project. What I like about both is they are visual representations of a process. The article provided me with a great real world example of how decision trees work and that is creditworthiness. Our credit reports rely on an abundent amount of information lendors use to grant us loans like credit score, payment history, income to debt ratios, etc. Although in todays technologically advanced world there is algorithyms that supply a lendor with the correct loan for the borrowers but I can see how a decision tree can/could be implemented. Looking at someone with a 804 credit score, strong payment history, an less than 30% income to debt credit history a decision make look like below. Keeping in mind this is at it’s rarest form and elementary for this discussion post. In the example below the credit score branches off into the payment histories then the income-debt ratio finally classifying where each borrower falls under the lendors interest rate for the loan.
<=30% 3.04% SPH >=30% 6.09%
804 Med PH >=50% 12.5%
Low PH >=70% 18%
What is a Decision Tree? How to do Decision Tree Analysis | Gliffy by PerforceLearn the basics of decision tree analysis and get started on your own by using a decision tree example as a template.Gliffy by Perforce
(Peer 2 SO)
The article, What Is the Decision Tree Analysis and How Does It Help a Business to Analyze Data, discussed the two basic types of decision tree analysis. Smarten (2018) explained that Classification Trees are used when the target variable is categorical to classify the data into predefined categories, while Regression Trees are used when the target variable is numeric. Smarten used credit card companies as an example of the classification tree. Another example that shows how Decision Tree Analysis is used in the real world is in the medical field.
For example, a decision tree analysis using the classification and regression tree method was conducted to evaluate the pre-and post-traumatic clinical risk factors most associated with the post-traumatic intracranial hemorrhage after brain injury and their possible role in determining the patient’s risk (Turcato et al., 2022). Patients could then be placed in categories to determine who needed to be more closely monitored or given extra care. The article showed me that decision tree analysis could benefit various fields.
Smarten. (2018). What is the Decision Tree Analysis, and How Does it Help a Business to Analyze Data? https://www.elegantjbi.com/blog/what-is-the-decision-tree-analysis-and-how-does-it-help-a-business-to-analyze-data.htm
Turcato, G., Cipriano, A., Park, N., Zaboli, A., Ricci, G., Riccardi, A., Barbieri, G., Gianpaoli, S., Guiddo, G., Santini, M., Pfeifer, N., Bonora, A., Paolillo, C., Lerza, R., & Ghiadoni, L. (2022). Decision tree analysis for assessing the risk of post-traumatic haemorrhage after mild traumatic brain injury in patients on oral anticoagulant therapy. BMC Emergency Medicine, 22(1), 1–10. https://doi.org/10.1186/s12873-022-00610-y
Decision Analysis Answer intial Post word and then Respond to two peers dicussi