House Actual Price Predicted Price 1 Predicted Price 2 230500 254000 256000 209900 215500 223400 3 258900 240000 228000 4 185500 204000 219400 5 169000 157500 159400 6 350500 325800 339800 7 399900 423600 452500 8 310000 324500 305500 9 195500 180750 193750 10 328900 340000 324500 Question 1) A) Compute the ME, RMSE, MAD, and MAPE for the two prediction models. ME - Model1: ME - Model2: RMSE - Model1: 17714.75 RMSE - Model2: 24397.96 MAD - Model1: 16675 MAD - Model2: 18735 MPE - Model1: MPE - Model2: MAPE - Model1: 6.55 MAPE - Model2: 7.33 B) Are the predictive models overestimating or underestimating the actual selling price on average? Predictive models are the actual selling price on average. (Answer choices: overestimating/underestimating)
House Actual Price Predicted Price 1 Predicted Price 2 230500 254000 256000 209900 215500 223400 3 258900 240000 228000 4 185500 204000 219400 5 169000 157500 159400 6 350500 325800 339800 7 399900 423600 452500 8 310000 324500 305500 9 195500 180750 193750 10 328900 340000 324500 Question 1) A) Compute the ME, RMSE, MAD, and MAPE for the two prediction models. ME - Model1: ME - Model2: RMSE - Model1: 17714.75 RMSE - Model2: 24397.96 MAD - Model1: 16675 MAD - Model2: 18735 MPE - Model1: MPE - Model2: MAPE - Model1: 6.55 MAPE - Model2: 7.33 B) Are the predictive models overestimating or underestimating the actual selling price on average? Predictive models are the actual selling price on average. (Answer choices: overestimating/underestimating)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Please all solve the question
![C) Compare the predictive models to a base model where every house is predicted
to be sold at the average price of all the houses in the training data set, which is
$260,500. Do the predictive models built by the real estate company outperform the
base model in terms of RMSE?
RMSE:
The predictive models
the base model. (Answer choices:
outperform/underperform)
D) Which predictive model is the better-performing model?
The
predictive model is the better performing model. (Answer
choices: first/second/base)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F075ecab7-a92e-41be-8455-f07b1df9cc71%2F1c9153cd-3ba2-41e4-a767-f8b50199b536%2Fozrvxoo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:C) Compare the predictive models to a base model where every house is predicted
to be sold at the average price of all the houses in the training data set, which is
$260,500. Do the predictive models built by the real estate company outperform the
base model in terms of RMSE?
RMSE:
The predictive models
the base model. (Answer choices:
outperform/underperform)
D) Which predictive model is the better-performing model?
The
predictive model is the better performing model. (Answer
choices: first/second/base)
![House
Actual Price
Predicted Price 1
Predicted Price 2
1
230500
254000
256000
209900
215500
223400
258900
240000
228000
4
185500
204000
219400
169000
157500
159400
6
350500
325800
339800
7
399900
423600
452500
8
310000
324500
305500
9
195500
180750
193750
10
328900
340000
324500
Question 1)
A) Compute the ME, RMSE, MAD, and MAPE for the two prediction models.
ME - Model1:
ME - Model2:
RMSE - Model1: 17714.75
RMSE - Model2: 24397.96
MAD - Model1: 16675
MAD - Model2: 18735
MPE - Model1:
MPE - Model2:
MAPE - Model1: 6.55
MAPE - Model2: 7.33
B) Are the predictive models overestimating or underestimating the actual selling
price on average?
Predictive models are
the actual selling price on average.
(Answer choices: overestimating/underestimating)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F075ecab7-a92e-41be-8455-f07b1df9cc71%2F1c9153cd-3ba2-41e4-a767-f8b50199b536%2Fje88by_processed.jpeg&w=3840&q=75)
Transcribed Image Text:House
Actual Price
Predicted Price 1
Predicted Price 2
1
230500
254000
256000
209900
215500
223400
258900
240000
228000
4
185500
204000
219400
169000
157500
159400
6
350500
325800
339800
7
399900
423600
452500
8
310000
324500
305500
9
195500
180750
193750
10
328900
340000
324500
Question 1)
A) Compute the ME, RMSE, MAD, and MAPE for the two prediction models.
ME - Model1:
ME - Model2:
RMSE - Model1: 17714.75
RMSE - Model2: 24397.96
MAD - Model1: 16675
MAD - Model2: 18735
MPE - Model1:
MPE - Model2:
MAPE - Model1: 6.55
MAPE - Model2: 7.33
B) Are the predictive models overestimating or underestimating the actual selling
price on average?
Predictive models are
the actual selling price on average.
(Answer choices: overestimating/underestimating)
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