Revision as of 23:55, 25 May 2023 by Admin (Created page with "You have constructed the following regression tree predicting unit sales (in thousands) of car seats. The variable ShelveLoc has possible values Good, Medium, and Bad. File...")
ABy Admin
May 26'23
Exercise
You have constructed the following regression tree predicting unit sales (in thousands) of car seats. The variable ShelveLoc has possible values Good, Medium, and Bad.
| Variable | Observed Value |
|---|---|
| ShelveLoc | Good |
| Price | 120 |
| Age | 57 |
| Advertising | 12 |
Determine the predicted unit sales (in thousands) for the above observation based on the regression tree.
- 4.7
- 6.6
- 7.4
- 9.2
- 9.4
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
ABy Admin
May 26'23
Key: D
For the first split, ShelveLoc = Good, the answer is no, and the branch to the right is taken.
For the second split, Price = 120 ≥ 110, the answer is yes, and the branch to the left is taken. The node has a predicted value of 9.2.
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.