Decision Tree case study
Read the attached case study titled A Typical Decision Tree. Using the figure provided titled Figure 7-1, A Decision Tree, provide your own interpretation of its information by answering the following in a Word document. An example is attached. Use the following questions as major headings.
Q1: What is the business scenario being used here?
Q2: What is the target variable, its type, and permissible values?
Q3: What is the percentage distribution of the target variable values in the training data set as a whole?
Q4: Which node is the root node, and what are the percentage distributions of the target variable?
Q5: There are three boxes with a letter I, A, or V connected to the box via an arrow. What is distinctive about each of these three boxes, and what does the letter with the arrow pointing to the box signify?
Q6: What is the name of each of the three boxes referred to in the previous question?
Q7: What is the rule set for the three boxes labeled with a letter and an arrow referred to in the previous question? Make sure your answer is specific for each box.
Q8: On page 243, the authors state: “After six months, 89.3% of subscribers are still active, 4.39% have left involuntarily, and 6.32% have left voluntarily.” What were the corresponding distributions for the training set? Why do you think they were different? What are the implications for this difference?
Q9: This organization is in a mature market, which means there are relatively few entities that do not already have a vendor supplying this product. The book says that in this type of market, organizations are concerned about churn. Why is that?
Q10: What did the organization learn in your opinion about churn that it can use from this activity?