The business problem facing a consumer products company is to measure the effectiveness of different types of advertising media in the promotion of its products. Specifically, the company is interested in the effectiveness of radio advertising and newspaper advertising (including the cost of discount coupons). During a one-month test period, data were collected from a sample of 22 cities with approximately equal populations. Each city is allocated a specific expenditure level for radio advertising and for newspaper advertising. The sales of the product (in thousands of dollars) and also the levels of media expenditure (in thousands of dollars) during the test month are recorded and stored in Advertise .
a. Using all the data as the training sample, develop a regression tree model to predict the sales of the product.
b. What conclusions can you reach about the sales of the product?