You recently started an actuarial data analytics company with several clients from the retail industry. One of your biggest clients is Oz-Mart, a clothing and small goods retailer, that has stores in every state across the country. Oz-Mart is interested in targeting specific products to discount for their upcoming sale. Their objective is to increase their market share.

(a)Discuss the ideal data they should use to identify which products should be discounted. Briefly explain the difficulties with obtaining the data and how you can address this.

You built a model to recommend which products should be discounted. Oz-Mart adopted these recommendations for their sale. They also collected data during the sale to determine whether it was successful.

(b)Explain how you would assess whether the model you built performed well.

(c)Oz-Mart wants you to evaluate the outcomes of the sale. Briefly describe how you could ascertain whether Oz-Mart achieved their objective and whether the sale was a sound management decision for their business.