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Decision tree is an important method for both induction research and data mining, which is mainly used for model classification and prediction. ID3 algorithm is the most widely used algorithm in the decision tree so far. Through illustrating on the basic ideas of decision tree in data mining, in this paper, the shortcoming of ID3's inclining to choose attributes with many values is discussed, and then a new decision tree algorithm combining ID3 and association function(AF) is presented. The experiment results show that the proposed algorithm can overcome ID3's shortcoming effectively and get more reasonable and effective rules.