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

question 218

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, how many cities were used in generating the regression tree?

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Definitions:

Seller To Buyer

The transfer of products, services, or assets from the seller to the buyer in a market transaction.

Ownership Utility

Orderly transfer of goods and services from the seller to the buyer; also called possession utility.

Exchange

A platform or marketplace where goods, services, or securities are traded between parties.

Time Utility

The value added to products or services by making them available when they are needed.