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

question 39

True/False

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, the highest mean weekend box office revenue is predicted to occur with at least $45 thousand spent on TV advertisement and fewer than 25 advertisement appearances a day.

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Definitions:

Tax Incidence

The ultimate distribution of a tax burden.

Distribution

The process of making a product or service available for use or consumption by a consumer or business user.

Tax Shifting

Occurs when households can alter their behavior and do something to avoid paying a tax.

Avoid Paying

Strategies or actions taken to minimize or evade expenses, taxes, or other financial obligations.