Describe the interesting and uninteresting information

Assignment Help Computer Engineering

Reference no: EM131926072

Problem

Competitive Auctions on eBay. The file eBayAuctions.csv contains information on 1972 auctions that transacted on eBay during May-June 2004. The goal is to use these data to build a model that will classify auctions as competitive or noncompetitive. A competitive auction is defined as an auction with at least two bids placed on the item auctioned. The data include variables that describe the item (auction category), the seller (his/her eBay rating), and the auction terms that the seller selected (auction duration, opening price, currency, day-of-week of auction close). In addition, we have the price at which the auction closed. The task is to predict whether or not the auction will be competitive. Data Preprocessing. Convert variable Duration into a categorical variable. Split the data into training (60%) and validation (40%) datasets.

a. Fit a classification tree using all predictors, using the best-pruned tree. To avoid overfitting, set the minimum number of records in a terminal node to 50 (in R: min-bucket = 50). Also, set the maximum number of levels to be displayed at seven (in R: max-depth = 7). Write down the results in terms of rules. (Note: If you had to slightly reduce the number of predictors due to software limitations, or for clarity of presentation, which would be a good variable to choose?)

b. Is this model practical for predicting the outcome of a new auction?

c. Describe the interesting and uninteresting information that these rules provide.

d. Fit another classification tree (using the best-pruned tree, with a minimum number of records per terminal node = 50 and maximum allowed number of displayed levels = 7), this time only with predictors that can be used for predicting the outcome of a new auction. Describe the resulting tree in terms of rules. Make sure to report the smallest set of rules required for classification.

e. Plot the resulting tree on a scatter plot: Use the two axes for the two best (quantitative) predictors. Each auction will appear as a point, with coordinates corresponding to its values on those two predictors. Use different colors or symbols to separate competitive and noncompetitive auctions. Draw lines (you can sketch these by hand or use R) at the values that create splits. Does this splitting seem reasonable with respect to the meaning of the two predictors? Does it seem to do a good job of separating the two classes?

f. Examine the lift chart and the confusion matrix for the tree. What can you say about the predictive performance of this model?

g. Based on this last tree, what can you conclude from these data about the chances of an auction obtaining at least two bids and its relationship to the auction settings set by the seller (duration, opening price, ending day, currency)? What would you recommend for a seller as the strategy that will most likely lead to a competitive auction?

Reference no: EM131926072

Questions Cloud

How is the pruned tree used for classification : How is the pruned tree used for classification? Examine the unpruned tree. What are the top three predictors according to this tree?

How will you decide which department should get equipment : Imagine that you are the administrator of a nonprofit community hospital. You have been approached by medical staff from two different departments.

What role does healthcare leadership play : Prepare an analysis based on what your research can discover, on the role of HIT, including artificial intelligence and supercomputing

Official discourse in the dominican republic : 1. What was the result of the Haitian genocide for the official discourse in the Dominican Republic?

Describe the interesting and uninteresting information : Describe the interesting and uninteresting information that these rules provide. Is this model practical for predicting the outcome of a new auction?

Calculate the investor percentage holding period return : An investor bought 10 Ellis Industries, Inc. long-term bonds 1 year ago, when they were first issued by the company. In addition, he bought 200 shares.

Multiple reasons of why the people started to revolt in 1848 : There were multiple reasons of why the people started to revolt in 1848. The biggest known cause was Nationalism. Many different ethnic groups

Explain the concept of the chapter and why you selected it : Explain the concept of the chapter and why you selected it; then offer your own APPLICATION of Foster's thinking to a personal, professional, or academic issue.

What can you say about the model fit : Create the "actual vs. forecast" plot. What can you say about the model fit? Use the regression model to forecast sales in January and February 1994.

User Account

All Pages