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Business Intelligence by Jerzy Surma

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4.2. Classification

In business, decision trees are commonly used for classification.6 Their big advantage from a user’s point of view is that they provide an explicit and clear representation of knowledge. The central idea of decision trees, as understood by John Ross Quinlan,7 and the algorithm used by decision trees will be discussed by looking at an example of a basic system that supports credit decisions (loan applications) in a retail bank.8

Table 4.1. The Description of Attributes for Classification of the Credit Application

Source: author.

Figure 4.2. Classification of new objects.

Source: author.

Figure 4.3. Classifier: Decision ...

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