A logistics company predicts how much freight a depot moves per day from two features:
Five depots make up the training set:
| Depot | Vans | Drivers | Freight (tonnes/day) |
|---|---|---|---|
| A | |||
| B | |||
| C | |||
| D | |||
| E |
The model has no bias term: , and is the design matrix whose columns are and .
The team tries the normal equations , finds they cannot be solved, and switches to ridge regression: choose to minimise
whose closed-form solution is
A new depot has just opened, running vans with drivers.
How much freight does the ridge model predict for it?
Round your answer to two decimal places.