Data defines the model by dint of genetic programming, producing the best decile table.

CHAID for Specifying a Model with Interaction Variables
Bruce Ratner, Ph.D.

In order to increase a model's predictive power beyond that provided by its components, data analysts create an interaction variable, which is the product of two or more component variables. However, a compelling case can be made for utilizing CHAID as an alternative method for specifying a model, thereby justifying the omission of the component variables under certain circumstances. Database marketing provides an excellent example for this alternative method. I illustrate the alternative method with a response model case study. [1 , pp. 155-166]

For more information about this article, call me at 516.791.3544, or e-mail,
Sign-up for a free GenIQ webcast: Click here.