You’re constructing a linear regression mannequin to mannequin the connection between advertising and marketing spend and income for an FMCG firm. The primary mannequin that you just constructed gave you an RMSE of 19.34. As you’re… – Avinash singh

1. Linear Regression Fashions RMSE Calculation

You’re constructing a linear regression mannequin to mannequin the connection between advertising and marketing spend and income for an FMCG firm. The primary mannequin that you just constructed gave you an RMSE of 19.34. As you’re engaged on the issue, you construct totally different linear regression fashions utilizing totally different derived options. The RMSE values for these fashions are given beneath.

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Which of the next combos of options would you utilize within the ultimate mannequin? Single Selection is right

a> Advertising spend

b> log(Advertising Spend)

c> (Advertising Spend)²

d> (Advertising Spend)³, (Advertising Spend)²

Right Reply — d> (Advertising Spend)³, (Advertising Spend)²

Clarification — Since a decrease RMSE signifies a better-performing mannequin with smaller common errors between predicted and precise income, the mannequin using Advertising spend^3 and (Advertising spend)^2 can be the chosen one for the ultimate mannequin as its worth is least.