Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An insurance company is evaluating house insurance premiums for the next year in a given area. The company collects data on three features: Feature

image

An insurance company is evaluating house insurance premiums for the next year in a given area. The company collects data on three features: Feature 1: Age - The age of the house in years. Feature 2: Size - The number of rooms in the house. Feature 3: Crime rate - This is an indicator for the average crime rate in the area. The company evaluates a sample of 800 houses in the area. Company's analyst uses linear programming to learn aggregation weights associated with a weighted arithmetic mean, OWA, a weighted power mean (p=0.5) and the Choquet integral. The analyst also calculate the arithmetic mean for comparison. The data were transformed to show that high score should be associated with high premium. All variables are transformed to [0,1] interval. The following results are obtained: Function AM WAM PM (p=0.5) OWA Learned weights Av. AE error 0.211, 0.412, 0.377 0.230, 0.482, 0.288 0.514.0.320.0.166 0.1112 0.108 0.1022 0.1078 RMSE Please make sure the answers needs to be in a sequential order separated by a comma, In case you are skipping (not answering) any question, please mention". (a) Which is the best fitting model? Please type "AM", "WAM", "PM" or "OWA". (b) Which variable is the most prominent in predicting the insurance premium? Please type "Feature 1", "Feature 2", or "Feature 3". (c) Do models tend towards high or low value? Please type "high value" or "low value" 0.1551 0.1478 0.144 0.1542

Step by Step Solution

3.34 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Precalculus

Authors: Michael Sullivan

9th edition

321716835, 321716833, 978-0321716835

More Books

Students also viewed these General Management questions

Question

How many moles of carbon atoms are there in 2 moles of propane?

Answered: 1 week ago

Question

=+d) Which car would you produce and why?

Answered: 1 week ago

Question

Find the exact value of expression. tan cos Cos 3

Answered: 1 week ago