Introduction to algorithms

In this section, we will look at the decision tree algorithm. We will go through an example to understand the algorithm. Once we get some clarity on the algorithm, we will try to understand the random forest algorithm with an example.

Decision tree 

To understand the random forest model, we must first learn about the decision tree, the basic building block of a random forest. We all use decision trees in our daily lives, even if you don't know it by that name. You will be able to relate to the concepts of a decision tree once we start going through the example.

Imagine you approach a bank for a loan. The bank will scan you for a series of eligibility criteria before they approve the loan. For each individual, the loan amount they offer will vary, based on the different eligibility criteria they satisfy. 

They may go ahead with various decision points to make the final decision to arrive at the possibility of granting a loan and the amount that can be given, such as...