Question: Problem 2 UG - GINI Index [ 2 5 ] { 1 / s } You are an Economic analyst at Company ABC. Your team
Problem UG GINI Index s
You are an Economic analyst at Company ABC. Your team is working on a binary decision tree model to predict Central bank's next monetary policy given today's inflation environment. Your team has collectively decided to use GINI index as the quality measure. The current node of the DT contains the records in the table below. Your manager asked you to determine which BINARY SPLIT of values for attribute "Inflation" into groups is the best with respect to GINI?
tableRecord IDInflation,Central Bank Monetary PolicyHigh,ContractionaryMedium,ExpansionaryMedium,ExpansionaryLow,ExpansionaryMedium,ContractionaryLow,ExpansionaryHigh,ExpansionaryHigh,ExpansionaryLow,ContractionaryLow,ExpansionaryMedium,ExpansionaryMedium,ContractionaryHigh,ContractionaryMedium,Expansionary
The results for the following intermediate steps must be given:
Parent measure
For each choice of a split
a Measure for each child
b Combined children measure
c Gain
Final result and conclusion
Hint: think about how many alternative binary splits make sense if we assume that inflation is a meaningful attribute for the decision. Is inflation a nominal, ordinal, or interval attribute here?
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