Exam 17: Business Analytics

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. -Referring to Scenario 17-3,the highest probability of switching is predicted to occur among customers who do not watch more than 5 hours of TV a day and are offered the bundled price of higher than $50.

Multilayer perceptrons usually contain an input layer,a hidden layer and an output layer.

In a regression tree,the dependent variable is a categorical variable.

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,the highest mean weekend box office revenue is predicted to occur with at least $45 thousand spent on TV advertisement and at least 25 advertisement appearances a day.

Successful implementation of a regression tree requires a method to provide prediction for the target variable at each of the nodes.

There is no significant difference between filtering performed in a complex real- world business analytic and filtering performed using the slicers in a PivotTable in Excel.

The result of the regression tree is affected by the distribution of the independent variables.

Single linkage can be used to measure the distance between objects in cluster analysis.

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. -Referring to Scenario 17-3,what is the highest rate of switching into the bundled offering?

Bullet graphs that use color to represent the value of a second variable,thereby increasing the data density of the displays,is an example of chartjunk.

SCENARIO 17-2 The treemap below shows the amounts (size)measured in billions of US dollars and percentage changes from prior year (color)of business-to-consumer ecommerce sales last year for North America,Asia Pacific,Western Europe,Central & Eastern Europe,Latin America,and Middle East & Africa. -Referring to Scenario 17-2,which region has the largest amount of business-to-consumer ecommerce sales last year?

Euclidean distance can be used to measure the distance between objects in cluster analysis.

The LogWorth statistic is used to decide when to split a node of a regression tree.