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Predictive Analytics in Commerce

Chapters 5 › Unit 5: Evaluating Performance Measurements View instructions Hide instructions

Evaluating Performance Measurements

Below you find two models and some corresponding performance measurements. If you should choose one of the two models based on these measurements, which one would you choose? And why?


Modal A
CP = 0.0001
R^2 = 0.98
Xerror = 0.65

Modal B
CP = 0.01
R^2 = 0.80
Xerror = 0.55

Model B

1 comment

I would choose model B, since I'm looking for a tree that has a low number of splits if possible (higher complexity parameter compared to model B) with the ability to predict accurately for different sets of data (relatively small Xerror) and with relatively high predictive power R^2. in other words, Model B does not overfit, the tree stays understandable and has good predictive power.

Comments

Perfect explanation Jorge!

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