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:

Fish

Aquatic animals that are typically covered with scales and have fins for movement; also refers to the act of catching these animals as a form of consumption or sport.

Utility Function

is a mathematical representation that captures an individual's preference system, showing the level of satisfaction or utility derived from consuming various bundles of goods.

Competitive Market

A market structure characterized by a large number of buyers and sellers, similar products offered by the competing businesses, and a negligible amount of market control held by each seller.

Coconuts

The large, oval, brown seed of a tropical palm, containing a clear liquid and a white, edible flesh.