Question: A classification tree is being constructed to predict if an insurance policy will lapse. A random sample of 1 0 0 policies contains 3 0
A classification tree is being constructed to predict if an insurance policy will lapse. A random sample of policies contains that lapsed. You are considering two splits: Split : One node has observations with lapses and one node has observations with lapses. Split : One node has observations with lapses and one node has observations with lapses. The total Gini index after a split is the weighted average of the Gini index at each node, with the weights proportional to the number of observations in each node. The total entropy after a split is the weighted average of the entropy at each node, with the weights proportional to the number of observations in each node. Determine which of the following statements isare true? I. Split is preferred based on the total Gini index. II Split is preferred based on the total entropy. III. Split is preferred based on having fewer classification errors.
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