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Which Description Best Fits the Following Tree Structure for Loan

Question 15

Multiple Choice

Which description best fits the following tree structure for loan debt balance with a single age predictor? Which description best fits the following tree structure for loan debt balance with a single age predictor?   A)  The split points presented represent the MSE calculated points for Age = 35. B)  The MAD of the single age predictor is $42,964 and $32,980 respectfully. C)  The MSE split for Age = 35 is between the two partitions of $42,964 and $32,980, respectfully. D)  The average loan debt balance of the two partitions are $42,964 and $32,980, respectfully, when Age = 35.


A) The split points presented represent the MSE calculated points for Age = 35.
B) The MAD of the single age predictor is $42,964 and $32,980 respectfully.
C) The MSE split for Age = 35 is between the two partitions of $42,964 and $32,980, respectfully.
D) The average loan debt balance of the two partitions are $42,964 and $32,980, respectfully, when Age = 35.

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