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

question 2

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 and sent an average of at least 7 emails per day from their ISP-provided email address, how many did not churn?

• A) 4
• B) 6
• C) 7
• D) 9
• E) 2

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Definitions:

Common Resource

A resource like air or water that is non-excludable and rivalrous, meaning it's difficult to prevent anyone from using it, and one person's use diminishes others' use.

Common Resource

A resource like air or water that is not owned by anyone, but can be used freely by the public, often leading to overuse and depletion.

Socially Optimal

A condition or point at which the benefit to society is maximized, often considered in economic contexts to represent the most efficient allocation of resources.

Cost-Benefit Analysis

An estimate of the costs and benefits of providing a good. When governments use cost-benefit analysis, they estimate the social costs and social benefits of providing a public good.