SCENARIO 14-5 The Output Below Shows the Results of the Neural Network

question 144

Short Answer

SCENARIO 14-5
The output below shows the results of the neural network 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 14-5, out of the 27 customers who did not switch in the validation data set, how many are correctly classified by the neural network?

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Definitions:

Risk Aversion

A preference to minimize uncertainty and avoid risk in investment decisions.

Systematic Risk

The inherent risk that affects the entire market or a wide range of securities, often caused by factors like economic, political, or global events, and cannot be mitigated just by diversification.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to that of the market.

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted according to its total market value.