A common example of decision trees for business application is to classify loans by likelihood of default.

Question

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Decision trees are commonly used in business applications to classify data or make predictions, and one specific example is to classify loans by the likelihood of default. The tree would include various factors such as credit score, income, employment status, previous loan history, and potentially other variables that could impact the borrower's ability to repay the loan. The goal is to create a model that accurately predicts the risk of default, which can help lenders make informed decisions about approving or denying loan applications.

A Common Example of Decision Trees for Business Application Is