Chapter 2, Problem 6P

Explanation of Solution

Given: A specific company made the training data by using the internal data including the purchase and demographic information. The future data to be arranged will include the demographic data of the list of purchases from other sources. In the training data, the predictor, “refund issued�, was a useful predictor.

To find: The explanation on why the predictor named “refund issued� in the training data cannot be considered as an appropriate variable to be incorporated in the model...