What is a common application of decision trees in real-world scenarios?
Practice Questions
1 question
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What is a common application of decision trees in real-world scenarios?
Image recognition
Natural language processing
Credit scoring
Time series forecasting
Decision trees are commonly used in credit scoring to assess the risk of lending to individuals based on various features.
Questions & Step-by-step Solutions
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Q
Q: What is a common application of decision trees in real-world scenarios?
Solution: Decision trees are commonly used in credit scoring to assess the risk of lending to individuals based on various features.
Steps: 5
Step 1: Understand what a decision tree is. It is a tool that helps make decisions by asking a series of questions.
Step 2: Identify a real-world scenario where decisions need to be made. One example is lending money to people.
Step 3: Recognize that lenders want to know if a person will pay back the money they borrow. This is called assessing risk.
Step 4: Learn that decision trees can help lenders by analyzing different factors about a person, like their income, credit history, and employment status.
Step 5: Realize that based on the answers to these questions, the decision tree can help decide if lending money to that person is a good idea.
