Question
The accompanying data file contains 35observations for an ice cream truck driver's daily income (Income in $), number of hours on the road (Hours), whether
The accompanying data file contains 35observations for an ice cream truck driver's daily income (Income in $), number of hours on the road (Hours), whether it was a particularly hot day (Hot=1 if the high temperature was above 85F, 0 otherwise), and whether it was a Holiday (Holiday = 1, 0 otherwise). Consider two models where Model 1 predicts Income on the basis of Hours, Hot, and Holiday and Model 2 also includes the interaction between Hot and Holiday.
a-1.Use the holdout method to compare the predictability of the models using the first 24 observations for training and the remaining 11 observations for validation. Report the estimates of Models 1 and 2 derived from the training set.(Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
a-2.Calculate the RMSE of the two models in the validation set.(Do not round intermediate calculations and round your final answers to 2 decimal places.) a-3.Which model is better for making predictions?
Income | Hours | Hot | Holiday |
196 | 5 | 1 | 0 |
282 | 8 | 0 | 0 |
318 | 6 | 1 | 0 |
232 | 5 | 1 | 0 |
276 | 8 | 0 | 0 |
312 | 8 | 0 | 1 |
193 | 5 | 0 | 1 |
182 | 4 | 0 | 0 |
321 | 8 | 1 | 0 |
283 | 8 | 0 | 0 |
325 | 8 | 1 | 0 |
247 | 7 | 0 | 1 |
398 | 8 | 1 | 1 |
448 | 8 | 1 | 1 |
214 | 4 | 0 | 0 |
235 | 8 | 0 | 0 |
238 | 8 | 0 | 0 |
148 | 3 | 1 | 0 |
313 | 8 | 0 | 1 |
449 | 8 | 1 | 1 |
332 | 8 | 1 | 1 |
247 | 8 | 0 | 0 |
363 | 7 | 1 | 0 |
393 | 7 | 1 | 1 |
182 | 8 | 0 | 0 |
228 | 8 | 0 | 0 |
355 | 6 | 1 | 1 |
248 | 7 | 0 | 1 |
291 | 8 | 1 | 0 |
255 | 5 | 1 | 0 |
239 | 6 | 0 | 0 |
181 | 6 | 0 | 0 |
222 | 7 | 0 | 0 |
170 | 5 | 0 | 1 |
374 | 6 | 1 | 1 |
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