SCENARIO 14-4 The Regression Tree Below Was Obtained for Predicting the Weekend

question 153

Short Answer

SCENARIO 14-4
The regression tree below was obtained for predicting the weekend box office revenue of a newly released movie (in thousands of dollars) based on data collected in different cities on the expenditure (at $25, $30, $35, $40, $45, $50, $55, $60, $65 or $70 thousand) spent on TV advertising and the number of times (10, 15, 20, 25, 30 or 35) a day the advertisement appear on TV.
-Referring to SCENARIO 14-4, what percentage of the variation in weekend box office revenue can be explained by the amount spent on TV advertising and the number of times a day the advertisement appears on TV?

---

Definitions:

Population Proportion

The fraction of the population that holds a particular trait, attribute, or characteristic of interest.

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, often used to assess the precision of sample estimates of population parameters.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, showing how the statistic varies from sample to sample.

Populations

Populations in statistical analysis refer to entire groups of individuals, events, or items which share at least one common characteristic.