SCENARIO 17-15 The Tree Diagram Below Shows the Results of the Classification

question 30

Short Answer

SCENARIO 17-15
The tree diagram below shows the results of the classification tree 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 17-15, the first split occurs at what price?

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Definitions:

Taxable Acquisition

A corporate acquisition or merger that is subject to taxation.

Tax-Free Acquisition

A type of corporate merger or acquisition structured in a way that allows for the transfer of assets without incurring federal income tax liabilities.

Capital Gains

The increase in value of an investment over its purchase price.