A Simple Example to Explain Choice Tree vs. Random Forest
Leta€™s focus on an idea research that express the difference between a decision tree and an arbitrary forest design.
Imagine a bank has got to approve a tiny loan amount for an individual in addition to financial needs to come to a decision rapidly. The bank checks the persona€™s credit history and their financial situation and finds they havena€™t re-paid the older loan but. Thus, the lender rejects the application form.
But herea€™s the capture a€“ the loan levels ended up being very small for banka€™s immense coffers and additionally they could have conveniently accepted they really low-risk move. Thus, the bank forgotten the possibility of producing some cash.
Today, another application for the loan comes in a couple of days later on but this time around the financial institution arises with an alternative strategy a€“ several decision-making procedures. Sometimes it checks for credit history initial, and sometimes it checks for customera€™s monetary disease and loan amount first.Continue reading