Which of the Following Statements Is True About Decision Trees

question 29

Multiple Choice

Which of the following statements is true about decision trees?

• A) Decision trees can be transformed into a set of If/Then rules.
• B) Decision tree analysis is a supervised data mining technique.
• C) Decision tree algorithms are similar to one another.
• D) Decision tree programs produce computer programs for trees set up by analysts.

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Definitions:

Contribution Margin

The difference between a company's sales revenue and its variable costs, serving as a measure of the profitability of individual products.

Monthly Unit Sales

The total number of units of a product sold by a company in a given month, often used to track sales trends and forecast demand.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Fixed Costs

Costs that remain constant regardless of the amount of production or sales, including rent, salaries, and insurance fees.