A cable television company has randomly selected a sample of 637 Basic package customers for a marketing test to see which customers are more likely to upgrade to the Premium package. They monitored several predictor variables based on customer activity during the most recently billed month. Then they included a special upgrade offer for the Premium package along with their bill. The response variable Upgrade equals Yes if a customer accepted the offer to upgrade to the Premium package and equals No otherwise. Below is the confusion matrix from the k-nearest neighbors classification analysis. What is the overall misclassification rate for the k-nearest neighbors classification?
A) .115
B) .121
C) .189
D) .234
E) .325

Question

A cable television company has randomly selected a sample of 637 Basic package customers for a marketing test to see which customers are more likely to upgrade to the Premium package. They monitored several predictor variables based on customer activity during the most recently billed month. Then they included a special upgrade offer for the Premium package along with their bill. The response variable Upgrade equals Yes if a customer accepted the offer to upgrade to the Premium package and equals No otherwise. Below is the confusion matrix from the k-nearest neighbors classification analysis.  What is the overall misclassification rate for the k-nearest neighbors classification?
A) .115 
B) .121 
C) .189 
D) .234 
E) .325

Quizplus · Accepted Answer

(25 + 52) / 637 = .121

A Cable Television Company Has Randomly Selected a Sample of 637