BUAN 6356 Homework 2 (2) PDF

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Linear Regression, Logistics Regression, Decision Tree...

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BUAN 6356 Homework 2 Part 1 - Individual Datacamp Assignment (33.33 points) Complete all assigned modules in Datacamp by the dates provided directly in Datacamp. You don’t need to submit anything for this portion as I will pull your grades directly from Datacamp. Grades will be based on completeness only so as long as you complete the Datacamp assignments by the due dates provided, you will receive full credit for them.

Part 2 - Work to be completed with your group (56.67 points) Complete the following problems from the 1st edition of Data Mining for Business Analytics, Concepts, Techniques and Applications in R.

Problem 15.4 – Marketing to Frequent Flyers (Thouin Revision) (14 points) The file EastWestAirlinesCluster.xls contains information on 3999 passengers who belong to an airline's frequent flyer program. For each passenger, the data include information on their mileage history and on different ways they accrued or spent miles in the last year. The goal is to try to identify clusters of passengers that have similar characteristics for the purpose of targeting different segments for different types of mileage offers. a. b. c. d. e.

f.

Apply hierarchical clustering to the data to the normalized measurements. Apply k-means clustering to the data to the normalized measurements. Interpret the clusters formed in above questions Which approach is better? To check the stability of the clusters, remove a random 5% of the data (by taking a random sample of 95% of the records), and repeat the analysis using both methods. Does the same picture emerge? Which clusters would you target for offers, and what types of offers would you target to customers in that cluster?

Chapter 9 (14 points) Problem 9.2 A and B only Chapter 6 (14 points) Problem 6.4 Chapter 10 (14.67 points) Problem 10.3

Grading (total of 100 points) 33.33 points – Datacamp assignment 56.67 points – answers to questions listed above 10 points – for class presentation and responses to my questions during your class presentation...