8.12 Movie lovers, Part II. Suppose an online media streaming company is interes

Question

8.12 Movie lovers, Part II. Suppose an online media streaming company is interested in build- ing a movie recommendation system. The website maintains data on the movies in their database (genre, length, cast, director, budget, etc.) and additionally collects data from their subscribers (demographic information, previously watched movies, how they rated previously watched movies, etc.). The recommendation system will be deemed successful if subscribers actually watch, and rate highly, the movies recommended to them. Should the company use the adjusted R2 or the p-value approach in selecting variables for their recommendation system?

Explanation / Answer

The company should use p-value approach in order to select variables. The p-value approach uses the probability of the hypothetical result obtaines by a sample survey as compared with the real situtation result. The R2 approach do not provide a result for obtaining accuracy. It does not provide a detail work in the project which shows lack of information.

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