SCENARIO 17-3 The Tree Diagram Below Shows the Results of the Classification

question 69

True/False

SCENARIO 17-3
The tree diagram below shows the results of the classification tree model that has been constructed to predict the probability of a cable company's customers who will switch ("Yes" or "No")into its bundled program offering based on the price ($30,$40,$50,$60)and whether the customer spends more than 5 hours a day watching TV ("Yes" or "No")using the data set of 100 customers collected from a survey.

-Referring to Scenario 17-3,the highest probability of switching is predicted to occur among customers who watch more than 5 hours of TV a day and are offered the bundled price of between $30 and $40.

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Definitions:

Sole Proprietorship

A business structure where the business is owned and operated by a single individual who has personal responsibility for all debts and liabilities.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.

Limited Partnership

A form of partnership consisting of one or more general partners who have full liability and one or more limited partners whose liability is limited to the amount of their investment.

Limited Liability Company

An enterprise framework combining the corporation's limited liability safeguard with the tax efficiency found in partnerships or sole proprietorships.