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.

Question

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.

Quizplus · Accepted Answer

The regression tree shows that the highest mean weekend box office revenue is predicted to occur in the group with at least $45 thousand spent on TV advertisement and at least 25 advertisement appearances a day, represented by the terminal node with a predicted value of $583.

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