Hi Tutor,

Please help me to answer the question below

Data

The data of this assessment task relates to a random sample of 30,000 customers from Tesco Clubcard (20,000 training set & 10,000 test set) in a period from 1 January 2015 to 31 December 2015. The 18 variables in the data table are described below:

ID: Unique ID of customers

Purchase: Number of purchases during the observation period1

T.last: The time gap between customer's first purchase and last purchase during the observation period

T.active: The time gap between customer's first purchase and the last day of the observation period

Loyalty: A binary variable to show membership level: (0) Silver (1) Gold

Service Failure: Number of service failures during the observation period

Total Profit: Total profit generate by the customer during the observation period

AP.spent: Total spending on Apparel category during the observation period

BH.spent: Total spending on Bakery category during the observation period

DL.spent: Total spending on Deli category during the observation period

DY.spent: Total spending on Dairy category during the observation period

FV.spent: Total spending on Fresh Produce category during the observation period

GM.spent: Total spending on General Merchandise category during the observation period

GR.spent: Total spending on Grocery category during the observation period

LQ.spent: Total spending on Liquor category during the observation period

MT.spent: Total spending on Meat category during the observation period

Socio.Economic:Socio Economic status of the customer on a scale from 1(lowest) to 10 (highest)

Churn: A binary variable to show the churn status of the customer in the prediction period2 (0) non-churner (1) churner

Question:

1- Construct a model to predict customer churn using logistic regression and evaluate the performance of the constructed model on the holdout sample provided (use metrics related to confusion matrix).

2- Evaluate the performance of the constructed model against the RFM method (use lift chart-i.e. concentration to make the comparison).

Attached herewith data link

https://docs.google.com/spreadsheets/d/1AXs2ebNv2wjjrLpzpiYE909DZwvy5Aaz/edit?usp=sharing&ouid=111469436529336914009&rtpof=true&sd=true