Decision Trees: A Beginner’s Guide

John Patrick Semillano
7 min readDec 15, 2023

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A group of LEGO-like developers discussion Decision Tree model
Image generated using GPT-4

In the complex world of machine learning, where algorithms learn from data to make predictions. At the heart of this world lies the Decision Tree, a fundamental model that embodies the essence of machine learning. This blog aims to demonstrate Decision Trees, making this complex topic accessible and engaging. Whether you’re a beginner in machine learning or looking to refresh your knowledge, this journey throigh Decision Trees will enhance your understanding and appreciation of this powerful tool.

Basics of Decision Trees

A Decision Tree is a flowchart-like structure in machine learning, where each internal node represents a “test” on an attribute, each branch represents the outcome of the test, and each leaf node represents a class label (decision taken after computing all attributes). The paths from root to leaf represent classification rules.

In simple terms, a Decision Tree splits the data into subsets based on the value of input features. This process is repeated recursively, resulting in a tree-like model of decisions.

There are two main types:

  1. Classification Trees — used when the outcome is a discrete value, such as ‘Yes’ or ‘No’.
  2. Regression Trees — used when the outcome is a continuous value, like a temperature or price.

Key Terminology:

  • Nodes: Test for the value of a certain attribute.
  • Branches: Outcome of a test and path to the next node.
  • Leaves: Terminal nodes that predict the outcome (label).

How Decision Trees are Built

The process starts at the tree’s root and involves splitting the data based on certain criteria. The choice of which attribute to split on and the specific split criteria (like which value of an attribute) are crucial decisions.

These concepts are used to select the attribute that partitions the data most effectively. Entropy measures the disorder or impurity in the dataset, while Information Gain measures the reduction in this disorder after splitting on an attribute.

Consider a simple dataset of weather conditions affecting whether to play tennis. The Decision Tree will learn to make decisions (play or not play) based on conditions like humidity, wind, and temperature.

Advantages and Disadvantages of Decision Trees

Advantages:

Simplicity: Easy to Understand and Interpret

  • Decision Trees mimic human decision-making more closely than other complex models, making them easier to understand and visualize. This simplicity is particularly beneficial when explaining model decisions to stakeholders who may not have a technical background.

Versatility: Handling Both Numerical and Categorical Data

  • A significant strength of Decision Trees is their ability to work with different types of data. Whether it’s numerical data (like heights or prices) or categorical data (like gender or color), Decision Trees can handle them without the need for extensive pre-processing.

Interpretability: Transparent Decision-Making Process

  • The decisions made by a Decision Tree are transparent and easy to follow. Each decision is based on a clear logic, tracing from the root to the leaf. This transparency builds trust and makes it easier to validate the model’s decisions.

Disadvantages:

Overfitting: Generalization Issues with Complex Trees

  • When a Decision Tree is overly complex, it can “memorize” the training data, leading to poor performance on unseen data. This phenomenon, known as overfitting, is a common pitfall, especially when the tree depth is not adequately controlled.

Instability: Sensitivity to Data Variations

  • Decision Trees can be sensitive to small changes in the training data. A slight change can result in a significantly different tree structure. This instability can be a drawback, especially in scenarios where data is expected to evolve over time.

Handling Continuous Variables: Potential Inefficiency

  • While Decision Trees can handle continuous variables, they may not be as effective compared to other models. They tend to divide the continuous variable into discrete categories, which can lead to loss of information and less effective splits.

Practical Applications of Decision Trees

Real-World Examples:

In Finance: Credit Scoring

  • Financial institutions use Decision Trees to assess the creditworthiness of borrowers. By analyzing various factors like income, employment history, credit history, and debt-to-income ratio, Decision Trees can predict the likelihood of a borrower defaulting on a loan. This method simplifies the decision-making process and helps in risk assessment.

In Healthcare: Diagnosing Patients

  • In the healthcare sector, Decision Trees play a crucial role in diagnostic procedures. By examining symptoms, patient history, and laboratory results, these models can assist medical professionals in identifying diseases or medical conditions. For example, a Decision Tree might analyze symptoms like fever, cough, and fatigue to distinguish between a viral and bacterial infection.

In Business: Customer Segmentation

  • Businesses frequently use Decision Trees for customer segmentation, dividing customers into distinct groups based on characteristics like purchasing behavior, demographics, and preferences. This segmentation enables businesses to tailor marketing strategies and product offerings to different customer groups, improving engagement and sales.

Enhancements and Variants

Beyond Basic Trees:

Decision Trees are powerful, but their capabilities can be significantly enhanced through advanced techniques like Random Forests and Gradient Boosting Trees. These variants tackle some of the inherent weaknesses of standalone decision trees, such as overfitting, and improve prediction accuracy.

Random Forests:

A Random Forest is a type of ensemble learning technique where multiple decision trees are combined to form a “forest.” Each tree in the forest is built from a sample drawn with replacement from the training set. Furthermore, when splitting nodes during the construction of the trees, only a random subset of the features is considered for splitting.

Advantages:

  • Reduced Overfitting: By averaging multiple trees, the model is less likely to fit too closely to the training data.
  • Higher Accuracy: Random Forests often achieve higher accuracy than individual decision trees, especially on larger datasets.
  • Feature Importance: They provide insights into the relative importance of different features for prediction.
  • Applications: Random Forests have wide applications in fields like bioinformatics for gene classification, finance for credit scoring, and e-commerce for recommendation systems.

Gradient Boosting Trees:

Gradient Boosting involves building trees sequentially, where each new tree helps to correct errors made by previously built trees. Trees are added one at a time, and existing trees in the model are not changed. A gradient descent procedure is used to minimize the loss when adding trees.

Advantages:

  • High Precision: Gradient Boosting can achieve more precise models than Random Forests.
  • Flexibility: It can optimize on different loss functions and provides several hyperparameter tuning options that can make the model robust.
  • Handling Imbalanced Data: Effective in scenarios where classes are imbalanced.
  • Applications: Widely used in search algorithms, ecology for species distribution modeling, and in finance for risk modeling.

Getting Started with Decision Trees

Getting started with decision trees in Python is made significantly easier with libraries like scikit-learn. This powerful, easy-to-use library provides tools for data mining and data analysis and is built on NumPy, SciPy, and matplotlib. Let’s walk through the basic steps to implement and visualize a decision tree using scikit-learn.

1. Setting Up Your Environment:

First, ensure you have Python installed on your system. Then, install scikit-learn and other necessary libraries using pip:

pip install numpy scipy matplotlib scikit-learn

2. Importing Required Libraries:

Begin your Python script by importing the required modules.

import matplotlib.pyplot as plt
from sklearn import datasets
from sklearn.tree import DecisionTreeClassifier
from sklearn import tree

3. Loading a Dataset:

For demonstration, we’ll use a built-in dataset from `scikit-learn`, the Iris dataset.

# Load the iris dataset
iris = datasets.load_iris()
X = iris.data
y = iris.target

4. Creating the Decision Tree Model:

Instantiate a DecisionTreeClassifier and fit it to the dataset.

# Initialize the DecisionTreeClassifier
clf = DecisionTreeClassifier(random_state=6969)

# Fit the model to the data
model = clf.fit(X, y)

5. Visualizing the Decision Tree:

Once the model is fitted, you can visualize the tree using `matplotlib`.

# Visualize the decision tree
plt.figure(figsize=(20,10))
tree.plot_tree(clf, filled=True, feature_names=iris.feature_names,
class_names=iris.target_names, rounded=True, fontsize=12)
plt.show()
Output of Step 5 using Jupyter Notebook

This simple example demonstrates the basic steps to implement a decision tree in Python using `scikit-learn`. You can replace the Iris dataset with your dataset and modify the DecisionTreeClassifier parameters as needed to better fit your data.

Tips for Beginners:

Understand Your Data: Before you start, spend time understanding the dataset you are working with. Decision trees can be very sensitive to small changes in the data.

Preprocess the Data: Clean your data and convert categorical variables into a format that can be used by the decision tree.

Experiment with Parameters: The DecisionTreeClassifier has various parameters like `max_depth`, `min_samples_split`, and `criterion`. Try different combinations to see how they affect the model.

Cross-Validation: Use cross-validation techniques to assess the performance of your model.

Avoid Overfitting: Be wary of overfitting, where your model performs well on the training data but poorly on new, unseen data. Techniques like pruning (limiting the depth of the tree) can help.

Decision Trees, with their simplicity and versatility, are a great starting point for anyone venturing into the world of machine learning. They provide a strong foundation for understanding more complex models. I encourage you to experiment with Decision Trees, explore their potential, and share your experiences. Your feedback and questions are highly valued and are the stepping stones for deeper exploration in this ever-evolving field. Happy learning!

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John Patrick Semillano
John Patrick Semillano

Written by John Patrick Semillano

Computer Science| Fintech | Data Science

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