Statistics for Machine Learning

Example of random forest using German credit data

The same German credit data is being utilized to illustrate the random forest model in order to provide an apple to apple comparison. A very significant difference anyone can observe compared with logistic regression is that effort applied on data preprocessing drastically decreases. The following differences are worth a mention:

• In RF, we have not removed variables one by one from analysis based on significance and VIF values, as significance tests are not applicable for ML models. However five-fold cross validation has been performed on training data to ensure the model's robustness.
• We have removed one extra dummy variable in the logistic regression procedure, whereas in RF we have not ...