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'''CHAID''' is a type of [[decision tree]] technique, based upon adjusted significance testing. It was published in 1980 by Gordon V. Kass. It can be used for prediction (like [[regression analysis]], originally known as XAID) or for detection of interaction between variables. CHAID stands for '''CH'''i-squared '''A'''utomatic '''I'''nteraction '''D'''etector, based upon a formal extension of AID (Automatic Interaction Detection) and THAID (THeta Automatic Interaction Detection) of the 1960's and 70's.
In practice, it is often used in the context of [[direct marketing]] to select groups of consumers and predict how their responses to some variables affect other variables.
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