SCENARIO 14-4
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 14-4, the first split occurs at $45 thousand spent on TVadvertising.

Question

SCENARIO 14-4
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 14-4, the first split occurs at $45 thousand spent on TVadvertising.

Quizplus · Accepted Answer

The first split occurs at $45 thousand spent on TV advertising because the first segment is defined as those who spent less than $45 thousand on TV advertising.

SCENARIO 14-4 The Regression Tree Below Was Obtained for Predicting the Weekend