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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Analytics Communicating With Numbers

ISBN: 9781260785005

1st Edition

Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

Question Posted: