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

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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. 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.
-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.


Definitions:

Simple Rate

A basic or straightforward interest rate that does not take into account the effect of compounding.

Annual Incremental

Relates to the yearly increase or addition in terms of quantity, size, rate, or level of company metrics or budgets.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest.

Initial Investment

Initial investment is the initial amount of money spent to start a project, purchase an asset, or embark on a new business venture.

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