An online retail company is trying to predict customer spending in the first three months of the
Question:
An online retail company is trying to predict customer spending in the first three months of the year. Brian Duffy, the marketing analyst of the company, has compiled a data set on 200 existing customers that includes sex (Female: 1 = Female, 0 otherwise), annual income in 1,000s (Income), age (Age, in years), and total spending in the first three months of the year (Spending). A portion of the E-Retailer_Data worksheet is shown in the accompanying table. Create a regression tree model for predicting customer spending during the first three months of the year (Spending). Select the best-pruned tree for scoring and display the full-grown, best-pruned, and minimum error trees.
a. Display the best-pruned tree. How many leaf nodes are in the best-pruned tree?
b. What are the RMSE and MAD of the best-pruned tree on the test data?
c. Score the 10 new customers in the E-Retailer_Score worksheet using the best-pruned tree. What are the mean and median values of the predicted spending amounts according to your model?
Step by Step Answer:
Business Analytics Communicating With Numbers
ISBN: 9781260785005
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen