QUESTION: 9

Refer to the exhibit:

The plots represent two models, A and B, being fit to the same two data sets, training and validation.

Model A is 90.5% accurate at distinguishing blue from red on the training data and 75.5% accurate at doing the same on validation data. Model B is 83% accurate at distinguishing blue from red on the training data and 78.3% accurate at doing the same on the validation data.

Which of the two models should be selected and why?

Model It is more complex with a higher accuracy than model B on training data.
Model A. It performs better on the boundary for the training data.
Model B. It is more complex with a higher accuracy than model A on validation data.
Model B. It is simpler with a higher accuracy than model A on validation data.

Answer(s): D

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QUESTION: 10

Assume a $10 cost for soliciting a non-responder and a $200 profit for soliciting a responder. The logistic regression model gives a probability score named P_R on a SAS data set called VALID. The VALID data set contains the responder variable Pinch, a 1/0 variable coded as 1 for responder. Customers will be solicited when their probability score is more than 0.05.

Which SAS program computes the profit for each customer in the data set VALID?