a. Open Practice 3 completed as instructed above.Examine the results of the linear model.

1. Does there seem to be a problem with model bias?
2. Do the residuals seem to satisfy the assumption of constant variance?

b. Build an appropriate GLM model for the continuous target under the assumption that it follows a log-normal distribution. Duplicate the linear regression model on a new page as a GLM. Select the Informative missingness check box. Use a Backward elimination method with the Significance levelselection criterion and default significance level of .01. Set the link function to Log.

c. Does the GLM model solve the problems that you found in the linear model, if any?

d. What main effects were removed from this model during the backward variable selection process? (Do not include the _miss variables.)

e. Save the changes as Assignment3.

Submission: A MS Word document in which you document all steps you completed to build this GLM Model to predict the amount of donations as well as the answers to all the questions in points a to d as stated above.

Saveyour Word document as Assignment3_AAABBB_XXX.docx where AAA are the first 3 letters of your first name, BBB are the first 3 letters of your last name and XXX are the last 3 digits of your student number.

Linear Regression of tot Interval New Sales Linear Regression tgt Interval New Sales Validation ASE 36,703,584.6660 Observations Used 198,859 Unused 861,179 Create Pipeline Fit Summary logi_rfm2 Average Sales Lifetime logi_rfm5 Count Purchased Past 3 Years RFMInteraction logi_rfm4 Last Product Purchase Amount category 2 Customer Value Level logi_rfm9 Months Since Last Purchase logi_rfm8 Count Prchad Lifetime Dir Promo Resp logi_rfm 10 Count Total Promos Past Year category 1 Account Activity Level logi_rfm 11 Count Direct Promos Past Year logi_rfmo Count Purchased Lifetime logi_rfm1 Average Sales Past 3 Years . . . . .. 0.1 0.01 0.001 0.0001 Variable Selection Plot Significance Level 0.8 ....... logi_rfm 12 Customer Tenure logi_rfm7 Count Prchad Past 3 Years Dir Promo Resp 0.6 ...... ..; .. 0.4 ...;... 0.2 .. .. . . 3 . . . . .. . .. logi_rfm 1 Average Sales Past 3 Years logi_rim3 Avg Sales Past 3 Years Dir Promo Resp N ...... W O 4 ?Page 1 Page 2 Page 1 (1) : + . . . Linear Regression of tgt Interval New Sales Optic X Linear Regression tgt Interval New Sales Validation ASE 36,703,584.6660 Observations Used 198,859 Unused 861,179 Create Pipeline E Rol Actio Residual Plot Studentized Residual # A Rul ... . ......- 1,327 5.0 .. ... .... Y Filte 2.5 . .. . .. . . Ran 0.0 ..... -2.5 . . . . .. .. ......- . . . . . -5.0 ...;.. .. ... ...:... . . . . ........ 5000 10000 15000 20000 25000 Predid ?. . . . .. Linear Regression of tgt Interval New Sales ... ........ Linear Regression tgt Interval New Sales Validation ASE 36,703,584.6660 Observations Used 198,859 Unused 861,179 Create Pipeline