SCENARIO 17-4 The Regression Tree Below Was Obtained for Predicting the Weekend

question 54

Short Answer

SCENARIO 17-4
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 17-4,how many cities were used in generating the regression tree?

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much the values in a data set deviate from the mean.

Capacity

The maximum level of output that a company can sustain to produce goods or services at a given time.

Demand Pattern

The trends, fluctuations, and behaviors in consumer demand over a specific period.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, indicating how much the numbers in a dataset differ from the mean or average.