Answer Happy

3. A bank would like to predict which customers will accept a loan offer. It uses historic data to construct a classification tree to classify records as either "non-acceptors" (blue) or "acceptors" (orange). The variables include family income ($1000s), family size, and a categorical variable for education, where indicates a high school diploma, 1 indicates a bachelor's degree, and 2 indicates a graduate degree. All arrows to the left indicate the condition in the splitting node is "true;" all arrows to the right indicate the condition is "false." In addition to the splitting condition, nodes contain the total number of records in the subgroup and the number in each target category, (non-acceptors, acceptors). Construct the logical if/then statements that correspond to nodes a, b, and c. For each node, also indicate the estimated probability that the predicted class is correct. Income s 110.5 samples = 3000 value = [2713, 287] True False 2363 Education s 1.5 637 [2326, 37] [387, 250] Node a Family s 2.5 400 [357, 43] Income s 116.5 237 [30, 207] 355 [355, 0] 45 [2, 43] 44 [30, 14] 193 [0, 1931 Node b Nodec