Significance Testing in Automatic Interaction Detection (A.I.D.)

Summary This paper initiates an investigation into the statistical significance of results obtained by analysing data through the Automatic Interaction Detection technique. A test statistic which is asymptotically independent of the sample size is examined and critical values are obtained for a special case. The asymptotic results are compared with the exact distribution for varying sample size in a specific example. A brief discussion on the application of the results to a particular case study concludes the paper.