Basic Business Statistics
Basic Business Statistics
14th Edition
ISBN: 9780134684840
Author: BERENSON, Mark L., Levine, David M., Szabat, Kathryn A.
Publisher: Pearson,
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Chapter 17, Problem 8PS

Undergraduate students at Miami University in Oxford, Ohio, were surveyed in order to evaluate the effect of price on the purchase of a pizza Hut. The students were asked to suppose that they were going to have a large two-topping delivered to their residence. Then they were asked to select from either Pizza Hut or another pizzeria of their choice. The price they would have to pay to get a Pizza Hut pizza differed from survey to survey. For example, some surveys used the price $11 .49 . Other prices investigated were $8 .49,  $9 .49, $10 .49, $12 .49, $13 .49 . and $14 .49 . The dependent variable for this study is whether or not a student will select Pizza Hut. The independent variables are the price of a Pizza Hut pizza and the gender of the student ( 1 = male, 0 = female ) .

a. 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 the student will select Pizza Hut based on the price of a Pizza Hut pizza and the gender of the student.

b. What conclusions can you reach about the probability the student will select Pizza Hut?

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