SQL Server Analysis Services

Data Mining Algorithms: Decision Trees

Decision Tree Algorithms in SQL Server Analysis Services

Decision trees are a powerful and intuitive class of supervised learning algorithms used for both classification and regression tasks. In SQL Server Analysis Services (SSAS), decision tree algorithms help you build predictive models that can segment data and identify key drivers for outcomes.

How Decision Trees Work

A decision tree works by recursively partitioning the dataset based on the values of input attributes. The goal is to create branches that lead to distinct outcomes. 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 (for classification) or a predicted value (for regression).

Key Concepts:

Decision Tree Algorithms in SSAS

SSAS provides implementations of decision tree algorithms that allow you to create predictive models with ease.

Microsoft Decision Trees Algorithm

This is the primary decision tree algorithm available in SSAS. It's designed for both classification and regression problems and offers flexibility in its configuration.

Features:

  • Supports classification and regression tasks.
  • Configurable splitting criteria (e.g., Gini Index).
  • Ability to control tree complexity and pruning.
  • Generates visual representations of the tree structure.

Use Cases:

  • Customer segmentation based on purchasing behavior.
  • Predicting loan default risk.
  • Identifying factors contributing to customer churn.

Example Scenario: Predicting Product Purchase

Imagine you want to predict whether a customer will purchase a specific product. You can train a decision tree model using historical customer data, including demographics, past purchase history, and marketing interactions. The resulting tree can reveal which customer segments are most likely to buy, guiding targeted marketing campaigns.

Consider a simplified rule derived from a decision tree:

IF (Age < 30 AND Income > $50,000) THEN Predict Purchase = Yes

Or for regression:

IF (Previous Purchases > 5 AND Customer Loyalty Score > 0.8) THEN Predict Spending = $250

Advantages of Decision Trees:

Considerations:

Further Reading: