SCENARIO 17-3 The Tree Diagram Below Shows the Results of the Classification

question 62

True/False

SCENARIO 17-3
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.
-True or False: Referring to Scenario 17-3, 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 higher than $50.

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Definitions:

Consumer Financial Protection Bureau

A U.S. government agency aimed at ensuring consumer protection in the financial sector and enforcing laws related to financial products and services.

Legislative Approval

The formal consent given by a legislative body to enact a proposed piece of legislation into law.

ARMs

Adjustable-Rate Mortgages, which are loans with interest rates that change over time based on market conditions.

Regulation

The act of controlling, governing, or directing according to rules, principles, or laws, usually by a government or regulatory body.