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

question 125

True/False

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 highest probability of switching is predicted to
occur among customers who watch more than 5 hours of TV a day and are offered the bundled
price of lower than $50.

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Definitions:

Stock Purchased

Refers to the acquisition of shares in a company, typically for investment purposes.

Fair Value Adjustment

An accounting process to correct the book value of an asset or liability to reflect its accurate market value.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Investments

Assets or items acquired with the goal of generating income or appreciation in value over time.