CHAID is the name of an algorithm for creating decision trees[1], which uses chi-square tests (this is what the CH in CHAID refers to).
Technical details
Although the software does not have CHAID, this is only because it uses a more modern approach which takes advantage of advances in computing and statistics since CHAID was developed. See Trees for a description of the approach used in the software and The difference between Trees, CHAID, CART and other tree-based models for a description of the difference between this approach, CHAID and related algorithms.
Method
In the software, you can use the CHAID algorithm to automatically combine categories in categorical variables. For this, please refer to:
- Create New Variables - Automatically Combine Categories - By Pattern (CHAID) - Any Categories
- Create New Variables - Automatically Combine Categories - By Pattern (CHAID) - Adjacent Categories
References
- ↑ * Kass, Gordon V.; An Exploratory Technique for Investigating Large Quantities of Categorical Data, Applied Statistics, Vol. 29, No. 2 (1980), pp. 119–127