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IBM SPSS Modeler Essentials

You're reading from   IBM SPSS Modeler Essentials Effective techniques for building powerful data mining and predictive analytics solutions

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Product type Paperback
Published in Dec 2017
Publisher Packt
ISBN-13 9781788291118
Length 238 pages
Edition 1st Edition
Concepts
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Authors (2):
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Keith McCormick Keith McCormick
Author Profile Icon Keith McCormick
Keith McCormick
Jesus Salcedo Jesus Salcedo
Author Profile Icon Jesus Salcedo
Jesus Salcedo
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Toc

CHAID theory


CHAID is a decision tree model. It is one of the oldest and most popular data mining techniques. At its core, CHAID is based on the Chi-square test; it chooses the predictors that have the strongest interaction (give the largest Chi-square statistic) with the target field and then it divides the sample based on this predictor. It can use the Pearson or Likelihood ratio Chi-square statistic. In the figure shown next, notice that the Educated_fulltime field is the most important predictor, because this is the field that has the largest Chi-square statistics. In fact, notice that the Chi-square statistic and percentages are exactly the same for both the CHAID model and the Chi-square test. In addition, if the categories of the predictor do not differ significantly from each other, the categories will be merged together. CHAID generates non-binary trees so it tends to create wider trees:

How CHAID processes different types of input variables

When using CHAID, or any algorithm, it...

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