Induction methods have recently been found to be useful in a wide vari
ety of business related problems, including in the construction of exp
ert systems. Decision tree induction is an important type of inductive
learning method. Empirical results have shown that pruning a decision
tree sometimes improves its accuracy. In this paper we summarize theo
retical results of pruning and illustrate these results with an exampl
e. We give a sample size sufficient for decision tree induction with p
runing based on recently developed learning theory. For situations whe
re it is difficult to obtain a large enough sample, we provide several
methods for a posterior evaluation of the accuracy of a pruned decisi
on tree. Finally we summarize conditions under which pruning is necess
ary for better prediction accuracy.