Palanquin Auto is a national pre-owned car retailer that offers an online marketplace for customers interested in
Question:
Palanquin Auto is a national pre-owned car retailer that offers an online marketplace for customers interested in purchasing a preowned automobile. In an effort to reduce price negotiation, Palanquin collects data on automobile sales in an effort to set fair, competitive prices. The file palanquin contains
data for the variables listed in Problem 25.
Predict the pre-owned car prices using a random forest. Set aside 50% of the data as a test set and use 50% of the data for training and validation. Categorical input variables with many possible categories can pose computational difficulties for tree-based methods, so exclude any categorical variable with more than 16 categorical values from consideration as an input variable.
a. Determine the random forest configuration that minimizes the RMSE in a validation procedure.
b. For the best-performing random forest identified in part (a), what is the RMSE on the test set?
Problem 25
Palanquin Auto is a national pre-owned car retailer that offers an online marketplace for customers interested in purchasing a preowned automobile. In an effort to reduce price negotiation, Palanquin collects data on automobile sales in an effort to set fair, competitive prices. The file palanquin contains data for the variables listed in the following table.
Predict the pre-owned car prices using an individual regression tree. Set aside 50%
of the data as a test set and use 50% of the data for training and validation. Categorical input variables with many possible categories can pose computational difficulties for regression trees, so exclude any categorical variable with more than 16 categorical values from consideration as an input variable.
Step by Step Answer:
Business Analytics
ISBN: 9780357902219
5th Edition
Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann