Data Science #29 - The Chi-square automatic interaction detection(CHAID) algorithm (1979)

In the 29th episode, we go over the 1979 paper by Gordon Vivian Kass that introduced the CHAID algorithm.CHAID (Chi-squared Automatic Interaction Detection) is a tree-based partitioning method introduced by G. V. Kass for exploring large categorical data sets by iteratively splitting records into mutually exclusive, exhaustive subsets based on the most statistically significant predictors rather than maximal explanatory power.
Unlike its predecessor, AID, CHAID embeds each split in a chi-squared significance test (with Bonferroni‐corrected thresholds), allows multi-way divisions, and handles…