Evaluating chi-squared automatic interaction detection

  • Authors:
  • Merel van Diepen;Philip Hans Franses

  • Affiliations:
  • Econometric Institute, Erasmus University Rotterdam, Rotterdam, The Netherlands;Econometric Institute, Erasmus University Rotterdam, Rotterdam, The Netherlands

  • Venue:
  • Information Systems
  • Year:
  • 2006

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Abstract

We propose a method to compute confidence bounds around the predictions from chi-squared automatic interaction detection (CHAID). These bounds are useful for ex ante target selection as some clusters may or may not overlap. They are also useful for ex post evaluation of the predictive quality of CHAID. The method is illustrated using simulated data.