He proposed the following definition of entropy to measure randomness within a given message.For instance entropy (randomness) of a fair coin, with the equal chance of heads & tails, is 1 bit (as calculated below). This article is a continuation of the retail case study example we have been working on for the last few weeks. The actual formula for calculating Information Entropy is: E = ... Information Gain is calculated for a split by subtracting the weighted entropies of each branch from the original entropy. The overall response rate for this campaign was 4.2%.You have divided the total hundred thousand solicited customers into three categories based on their past 3 months activities before the campaign. The second law states that:Total entropy or overall disorder / randomness of the Universe is always increasing.OK, let’s take an example to understand this better. P = Total yes = 9. In this case, your effort is to improve a future campaign’s performance. Retail Case Study Example – Decision Tree (Entropy : C4.5 Algorithm)Decision Tree – Entropy – Retail Case Study Example (Part 6) A decision tree is a tree-like structure and consists of following parts(discussed in Figure 1);High entropy represents that data have more variance with each other.Low entropy represents that data have less variance with each other.Note: if yes =2 and No=3 then entropy is 0.970 and it is same  0.970 if yes=3 and No=2So here when we calculate the entropy for age<20, then there is no need to calculate the entropy for age >50 because the total number of Yes and No is same.0.248 is a greater value than income, Credit Rating, and Region. If the sample is completely homogeneous the entropy is zero and if the sample is an equally divided it has entropy of one[1]. In other words, higher the entropy or randomness of a system the harder it is to convert it to meaningful work. 204.3.5 Information Gain in Decision Tree Split 0 responses on "204.3.4 How to Calculate Entropy for Decision Tree Split?" Notice in the second term 95.8% (=100%-4.2%) is the percentage of non-converted customers.This is the same value we have calculated at the bottom-most row of the following table for total entropy.Now let us try to find the entropy of the tree by calculating entropies of individual components of the first tree (with 3 nodes – low; medium; high)Now, the total entropy of this tree is just the weighted sum of all its components. Yes, I admit I love physics. Yes, the Universe is destined to move toward disorder or randomness, but in small pockets, we can still use information to produce order.This is really interesting (sage of physics in analytics)………..thank you for posting such a nice articlethe way u explain analytics is awesome …….thank youIIT-B rocks! When you use fuel to run your car, a perfectly ordered petrol (compact energy) is converted/dissipated to disordered forms of energy like heat, sound, vibrations etc. This is awesomely put together! difference of entropies:Hence we need to first calculate the baseline entropy of data with 4.2% conversion (4200 conversions out of 100,000 solicited customers). When training a Decision Tree using these metrics, the best split is … By the way, your calculation is correct.

ID3 algorithm uses entropy to calculate the homogeneity of a sample. It says:Energy can neither be created nor destroyed, or in other words the total energy for the Universe is constant.The first reaction from most students after learning this fact was : why bother saving electricity, and fuel?