Which Predictive Analytic Technique Would Be Best Suited to an Analysis

question 25

Multiple Choice

Which predictive analytic technique would be best suited to an analysis of Facebook users, age 50-59, who purchase items on Amazon?

• A) Neural network modeling due to the large data set with many observations.
• B) Logistic regression, since the dependent variable is age.
• C) Logistic regression, since the dependent variable is purchase items on Amazon, or does not purchase items on Amazon.
• D) Either neural network modeling or logistic regression would work, depending on how close you want your p-value to .05.

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Definitions:

Depreciable Cost

The difference between a fixed asset’s initial cost and its residual value.

Acquisition Cost

The total cost associated with acquiring an asset, including the purchase price and any additional expenses necessary to get the asset ready for use.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate; it applies this rate to the book value of the asset at the beginning of each year.

Depreciation

The process by which a business spreads out the cost of a capital asset over its expected useful life.