An Internet Service Provider (ISP) Has Randomly Selected a Sample

question 43

Multiple Choice

An internet service provider (ISP) has randomly selected a sample of 223 observations concerning values of the response variable Churn and several predictor variables based on customer activity during the most recently billed month. Here Churn equals Yes if a customer churned-left the internet service provider for another ISP-and equals No otherwise. The predictor variable MinutesOn is the average daily minutes the customer spent online. EmailSent is the average daily number of emails the customer sent from the email address provided by the ISP. ServCalls is the number of times the customer called for service. Below is part of the classification tree they derived from the data collected in the study. Of the sampled customers who spent an average of at least 511 minutes online per day, how many did not churn?

• A) 14
• B) 9
• C) 7
• D) 6
• E) 5

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Definitions:

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they have no preference for one combination over another, all else being equal.

Apples

While commonly known as a fruit, in economics, "apples" could metaphorically refer to any basic commodity used in comparative analysis.

Bananas

A tropical, edible fruit, curved in shape and rich in potassium, produced by various types of large herbaceous flowering plants.

Perfect Substitute

Products or goods that can serve the same purpose perfectly, such that a consumer is indifferent to which product they use.