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Many real-world analytics problems involve two significant challenges: prediction and optimization. Due to the typically complex nature of each challenge, the standard paradigm is predict-then-optimize. By and large, machine learning tools…

Optimization and Control · Mathematics 2020-11-23 Adam N. Elmachtoub , Paul Grigas

The predict-then-optimize (PTO) framework is indispensable for addressing practical stochastic decision-making tasks. It consists of two crucial steps: initially predicting unknown parameters of an optimization model and subsequently…

Systems and Control · Electrical Eng. & Systems 2024-11-20 Jixian Liu , Tao Xu , Jianping He , Chongrong Fang

Interpretable reinforcement learning policies are essential for high-stakes decision-making, yet optimizing decision tree policies in Markov Decision Processes (MDPs) remains challenging. We propose SPOT, a novel method for computing…

Machine Learning · Computer Science 2025-10-23 Xuyuan Xiong , Pedro Chumpitaz-Flores , Kaixun Hua , Cheng Hua

Improvements in return forecast accuracy do not always lead to proportional improvements in portfolio decision quality, especially under realistic trading frictions and constraints. This paper adopts the Smart Predict--then--Optimize (SPO)…

Portfolio Management · Quantitative Finance 2026-01-13 Wang Yi , Takashi Hasuike

Decision trees are popular in survival analysis for their interpretability and ability to model complex relationships. Survival trees, which predict the timing of singular events using censored historical data, are typically built through…

Machine Learning · Computer Science 2025-11-24 Antonio Consolo , Edoardo Amaldi , Emilio Carrizosa

Sparse decision trees are one of the most common forms of interpretable models. While recent advances have produced algorithms that fully optimize sparse decision trees for prediction, that work does not address policy design, because the…

Machine Learning · Computer Science 2022-10-27 Ali Behrouz , Mathias Lecuyer , Cynthia Rudin , Margo Seltzer

Decision tree optimization is fundamental to interpretable machine learning. The most popular approach is to greedily search for the best feature at every decision point, which is fast but provably suboptimal. Recent approaches find the…

Machine Learning · Computer Science 2025-11-19 Varun Babbar , Hayden McTavish , Cynthia Rudin , Margo Seltzer

Decision trees are widely used for non-linear modeling, as they capture interactions between predictors while producing inherently interpretable models. Despite their popularity, performing inference on the non-linear fit remains largely…

Methodology · Statistics 2026-04-14 Soham Bakshi , Snigdha Panigrahi

The performance of optimization algorithms relies crucially on their parameterizations. Finding good parameter settings is called algorithm tuning. The sequential parameter optimization (SPOT) package for R is a toolbox for tuning and…

Mathematical Software · Computer Science 2021-03-05 Thomas Bartz-Beielstein , Martin Zaefferer , Frederik Rehbach

As a multitude of capable machine learning (ML) models become widely available in forms such as open-source software and public APIs, central questions remain regarding their use in real-world applications, especially in high-stakes…

Machine Learning · Computer Science 2024-06-03 Dimitris Bertsimas , Matthew Peroni

The predict-then-optimize (PTO) framework is a standard approach in data-driven decision-making, where a decision-maker first estimates an unknown parameter from historical data and then uses this estimate to solve an optimization problem.…

Optimization and Control · Mathematics 2025-07-29 Michael Albert , Max Biggs , Ningyuan Chen , Guan Wang

The predict-then-optimize framework is fundamental in many practical settings: predict the unknown parameters of an optimization problem, and then solve the problem using the predicted values of the parameters. A natural loss function in…

Machine Learning · Computer Science 2022-08-03 Othman El Balghiti , Adam N. Elmachtoub , Paul Grigas , Ambuj Tewari

Many real-world decision processes are modeled by optimization problems whose defining parameters are unknown and must be inferred from observable data. The Predict-Then-Optimize framework uses machine learning models to predict unknown…

Machine Learning · Computer Science 2023-11-23 James Kotary , Vincenzo Di Vito , Jacob Christopher , Pascal Van Hentenryck , Ferdinando Fioretto

Combinatorial optimization assumes that all parameters of the optimization problem, e.g. the weights in the objective function is fixed. Often, these weights are mere estimates and increasingly machine learning techniques are used to for…

Machine Learning · Computer Science 2019-11-25 Jaynta Mandi , Emir Demirović , Peter. J Stuckey , Tias Guns

Reinforcement learning techniques leveraging deep learning have made tremendous progress in recent years. However, the complexity of neural networks prevents practitioners from understanding their behavior. Decision trees have gained…

Machine Learning · Computer Science 2024-08-22 Daniël Vos , Sicco Verwer

We study contextual stochastic optimization problems, where we leverage rich auxiliary observations (e.g., product characteristics) to improve decision making with uncertain variables (e.g., demand). We show how to train forest decision…

Optimization and Control · Mathematics 2022-03-17 Nathan Kallus , Xiaojie Mao

Decision Trees are prominent prediction models for interpretable Machine Learning. They have been thoroughly researched, mostly in the batch setting with a fixed labelled dataset, leading to popular algorithms such as C4.5, ID3 and CART.…

Machine Learning · Computer Science 2024-06-24 Ayman Chaouki , Jesse Read , Albert Bifet

Classification and Regression Trees (CARTs) are off-the-shelf techniques in modern Statistics and Machine Learning. CARTs are traditionally built by means of a greedy procedure, sequentially deciding the splitting predictor variable(s) and…

Machine Learning · Statistics 2021-10-25 Rafael Blanquero , Emilio Carrizosa , Cristina Molero-Río , Dolores Romero Morales

Decision tree learning is a widely used approach in machine learning, favoured in applications that require concise and interpretable models. Heuristic methods are traditionally used to quickly produce models with reasonably high accuracy.…

Besides serving as prediction models, classification trees are useful for finding important predictor variables and identifying interesting subgroups in the data. These functions can be compromised by weak split selection algorithms that…

Applications · Statistics 2010-11-03 Wei-Yin Loh
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