CHAID

CHAID is a type of decision tree technique. It was published in 1980 by Gordon V. Kass. It can be used for prediction (like regression analysis) or for detection of interaction between variables. CHAID stands for CHi-squared Automatic Interaction Detector.In practice, it is often used in the context of direct marketing to select groups of consumers and predict how their responses to some variables affect other variables. Like other decision trees, its advantages are that its output is highly visual and easy to interpret. Because it uses multiway splits by default, it needs rather large sample sizes to work effectively as with small sample sizes the respondent groups can quickly become too small for reliable analysis.
See more at Wikipedia.org...

CHAID is a classification trees program developed by Kass (1980) that performs multi-level splits when computing classification trees . For discussion of the differences of CHAID from other classification tree programs, see A Brief Comparison of Classification Tree Programs.