Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Type or paste question here A real estate company has built two predil tive models for estimating the selling price of a house. Using a

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedType or paste question here

A real estate company has built two predil tive models for estimating the selling price of a house. Using a small test data set of 10 observations, it tries to assess how the prediction models would perform on a new data set. The following table lists a portion of the actual prices and predicted prices generated by the two predictive models. House 1 2 8 10 Actual Price $230,668 $209,793 Predicted Price 1 $ 254,019 $215,387 Predicted Price 2 $256,017 $223,545 $328,993 $340,004 $324,574 picture Click here for the Excel Data File a. Compute the ME, RMSE, MAD, MPE, and MAPE for the two predictive models. (Round intermediate calculations to at least 4 decimal places and your final answers to 2 decimal places. Negative values should be indicated by a minus sign.) Model 1 Model 2 RMSE ME MAD MPE % % MAPE % % . Are the predictive models over- or underestimating the actual selling price on average?

Step by Step Solution

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

Financial Adulting Everything You Need To Be A Financially Confident And Conscious Adult

Authors: Ashley Feinstein Gerstley

1st Edition

1119817307, 9781119817307

More Books

Students also viewed these Finance questions