Regression Analyses or Decision Trees?
Regression Analyses or Decision Trees?

Summary/Abstract: Decision tree algorithm is an important classification method in data mining techniques. A decision tree creates classification and regression models like a tree that has a root node, branches, and leaf nodes. Logistic regression which is an alternative method to regression analysis when the dependent variable is a dichotomy, is another technique used for classification purposes. Within the scope of this research, logistic regression, linear regression, classification tree, and regression tree were applied on the same data set. This study explores the most important variables determining the house price by using these four methods. Models’ performances and predictive powers were compared and the best model is determined. This comparison was performed using 414 real estate data on 5 independent variables and the dependent variable is house price. The findings showed that the classification tree model for real estate valuation data performs better than standard approaches.

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