Predictive Analysis in Business Analytics: Application of Decision Tree in Business Decision Making

Abstract

Business Analytics was defined as one of the most important aspects of combinations of skills, technologies and practices which scrutinize a corporation’s data and performance to transpire a data driven decision making analysis for a corporation’s future direction and investment plans. In this paper, much of the focus will be given to the predictive analysis which is a branch of business analytics which scrutinize the application of input data, statistical combinations and intelligence machine learning (ML) statistics on predicting the plausibility of a particular event happening, forecast future trends or outcomes utilizing on hand data with the final objective of improving performance of the corporation. Predictive analysis has been gaining much attention in the late 20th century and it has been around for decades, but as technology advances, so does this technique and the techniques include data mining, big data analytics, and prescriptive analytics. Last but not least, the decision tree methodology (DT) which is a supervised simple classification tool for predictive analysis which be fully scrutinized below for applying predictive business analytics and DT in business applications