Pearson eText for Basic Business Statistics -- Instant Access (Pearson+)
14th Edition
ISBN: 9780137400119
Author: MARK BERENSON, David Levine
Publisher: PEARSON+
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Chapter 17, Problem 7PS
An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on the number of claims submitted per year by the policy holder and whether the policy is a new policy, that is, is one year old or less (coded as
a. Using all the data as the training sample, develop a classification tree model to predict the
b. What conclusions can you reach about the probability of a fraudulent claim?
c. Using half the data as the training sample and the other half of the data as the validation sample, develop a classification tree model to predict the probability of a fraudulent claim, based on the number of claims submitted per year by policy holder and whether the policy is new.
d. What difference exist in the results of (a) and (c)? What conclusions can you reach the models fit from the training sample in (a) and (c)?
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Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include:
Mileage (mpg)
Number of Cylinders (cyl)
Displacement (disp)
Horsepower (hp)
Research: Google to understand these variables.
Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp
Mean
Median
First Quartile (Q1)
Second Quartile (Q2)
Third Quartile (Q3)
Fourth Quartile (Q4)
10th Percentile
70th Percentile
Skewness
Kurtosis
Document Your Results:
In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command”
In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…
Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include:
Mileage (mpg)
Number of Cylinders (cyl)
Displacement (disp)
Horsepower (hp)
Research: Google to understand these variables.
Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp
Mean
Median
First Quartile (Q1)
Second Quartile (Q2)
Third Quartile (Q3)
Fourth Quartile (Q4)
10th Percentile
70th Percentile
Skewness
Kurtosis
Document Your Results:
In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command”
In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…
Chapter 17 Solutions
Pearson eText for Basic Business Statistics -- Instant Access (Pearson+)
Ch. 17 - The business problem facing a consumer products...Ch. 17 - Prob. 2PSCh. 17 - Prob. 3PSCh. 17 - The owner of a moving company typically has his...Ch. 17 - A hotel has designed a new system for room service...Ch. 17 - A marketing manager wants to predict customers...Ch. 17 - An automotive insurance company wants to predict...Ch. 17 - Undergraduate students at Miami University in...Ch. 17 - Prob. 9PSCh. 17 - The file Cereals contains the calories,...
Ch. 17 - The file Protein contain calorie and cholesterol...Ch. 17 - Prob. 12PSCh. 17 - The file MobileSpeed contains the overall download...Ch. 17 - Prob. 14PSCh. 17 - Prob. 15PSCh. 17 - Prob. 16PSCh. 17 - Prob. 17PSCh. 17 - Prob. 18PSCh. 17 - Prob. 19PSCh. 17 - Prob. 20PSCh. 17 - Prob. 21PSCh. 17 - Prob. 22PSCh. 17 - What is the difference between supervised and...Ch. 17 - Prob. 24PSCh. 17 - Prob. 25PSCh. 17 - How does cluster analysis differ from...Ch. 17 - Prob. 27PSCh. 17 - Prob. 28PSCh. 17 - The file FTMBA contains a sample of top-ranked...Ch. 17 - Prob. 30PSCh. 17 - Prob. 31PSCh. 17 - Prob. 32PSCh. 17 - Prob. 33PSCh. 17 - Prob. 34PSCh. 17 - Prob. 35PSCh. 17 - In recent years, the share of Greek yogurts in the...
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- Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include: Mileage (mpg) Number of Cylinders (cyl) Displacement (disp) Horsepower (hp) Research: Google to understand these variables. Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp Mean Median First Quartile (Q1) Second Quartile (Q2) Third Quartile (Q3) Fourth Quartile (Q4) 10th Percentile 70th Percentile Skewness Kurtosis Document Your Results: In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command” In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…arrow_forward2 (VaR and ES) Suppose X1 are independent. Prove that ~ Unif[-0.5, 0.5] and X2 VaRa (X1X2) < VaRa(X1) + VaRa (X2). ~ Unif[-0.5, 0.5]arrow_forward8 (Correlation and Diversification) Assume we have two stocks, A and B, show that a particular combination of the two stocks produce a risk-free portfolio when the correlation between the return of A and B is -1.arrow_forward
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