Decision Tree is a decision-making tool that uses a flowchart-like tree structure or is a model of decisions and all of their possible results, including outcomes, input costs and utility.
Decision-tree algorithm falls under the category of supervised learning algorithms. It works for both continuous as well as categorical output variables.
The branches/edges represent the result of the node and the nodes have either:
Conditions [Decision Nodes] Result [End Nodes]
Decision Tree Regression:
Decision tree regression observes features of an object and trains a model in the structure of a tree to predict data in the future to produce meaningful continuous output.
Continuous output means that the output/result is not discrete, i.e., it is not represented just by a discrete, known set of numbers or values.
Discrete output example: A weather prediction model that predicts whether or not there’ll be rain in a particular day.
Continuous output example: A profit prediction model that states the probable profit that can be generated from the sale of a product.
Here, continuous values are predicted with the help of a decision tree regression model.