User Account

All Pages

Design two separate pivot tables for the training data

Assignment Help Applied Statistics
Reference no: EM131634795

Assessment item

Task

Business Case Analysis 1

1. Dimension ReductionThis item requires the dataset Utilities.xls which can be found on the subject Interact site.

This dataset gives corporate data on 22 US public utilities. We are interested in forming groups of similar utilities. The objects to be clustered are the utilities.

There are 8 measurements on each utility described below. An example where clustering would be useful is a study to predict the cost impact of deregulation. To do the requisite analysis economists would need to build a detailed cost model of the various utilities.

It would save a considerable amount of time and e?ort if we could cluster similar types of utilities and to build detailed cost models for just one "typical" utility in each cluster and then scaling up from these models to estimate results for all utilities. The objects to be clustered are the utilities and there are 8 measurements on each utility.

X1: Fixed-charge covering ratio (income/debt)
X2: Rate of return on capital
X3: Cost per KW capacity in place
X4: Annual Load Factor
X5: Peak KWH demand growth from 1974 to 1975
X6: Sales (KWH use per year)
X7: Percent Nuclear
X8: Total fuel costs (cents per KWH)

a. Conduct Principal Component Analysis (PCA) on the data. Evaluate and comment on the Results. Should the data be normalized? Discuss what characterizes the components you consider key and justify your answer.

b. Briefly explain advantages and any disadvantages of using the PCA compared to other methods for this task.

2. Naïve Bayes Classifier

This item requires the dataset UniversalBank.xls which can be found on the subject Interact site.

The following is a business analytical problem faced by financial institutions and banks. The objective is to determine the measurements for personal loan acceptance.

The dataset UniversalBank.xls contains data on 5000 customers of Universal Bank. The data include customer demographic information (age, income, etc.), the customer's relationship with the bank (mortgage, securities account etc.), and the customer response to the last personal loan campaign (Personal Loan). Among these 5000 customers, only 480 (= 9.6%) accepted the personal loan that was offered to them in the earlier campaign. In this exercise we focus on two predictors: Online (whether or not the customer is an active user of online banking services) and Credit Card (abbreviated CC below) (does the customer hold a credit card issued by the bank), and the outcome Personal Loan (abbreviated Loan below). Partition the data into training (60%) and validation (40%) sets.

a. Create a pivot table for the training data with Online as a column variable, CC as a row variable, and Loan as a secondary row variable. The values inside the cells should convey the count (how many records are in that cell).

b. Consider the task of classifying a customer who owns a bank credit card and is actively using online banking services. Analyse the pivot table and calculate the probability that this customer will accept the loan offer. Note: This is the probability of loan acceptance (Loan=1) conditional on having a bank credit card (CC=1) and being an active user of online banking services (Online=1).

c. Design two separate pivot tables for the training data. One will have Loan (rows) as a function of Online (columns) and the other will have Loan (rows) as a function of CC. Compute the following quantities [P(A | B) means "the probability of A given B"]:

i. P(CC=1 | Loan=1) (the proportion of credit card holders among the loan acceptors)
ii. P(Online=1 | Loan=1)
iii. P(Loan=1) (the proportion of loan acceptors)
iv. P(CC=1 | Loan=0)
v. P(Online=1 | Loan=0)
vi. P(Loan=0)

d. Using the quantities computed in (c), compute the Naive Bayes probability P(Loan=1 | CC=1, Online=1).

e. Based on the calculations above, suggest the best possible strategy for the customer to get the loan.

Rationale

This task assesses your progress towards meeting Learning Outcomes 1, 2 and 3:

1. Be able to identify and analyse business requirements for the identification of patterns and trends in data sets

2. Be able to appraise the different approaches and categories of data mining problems.

3. Be able to compare and evaluate output patterns

Attachment:- Boston Housing Data.rar

Verified Expert

This assignment is based on the concepts of statistical data of the clustering. In this work, we have to evaluate the conditional probability. Also, by using the XL miner tool, we have to analyze the data by using principal component analysis.

Reference no: EM131634795

Questions Cloud

How many blocks can be stored in each level of the memory : CS 152 Computer Systems Architecture Midterm Examination. How many blocks can be stored in each level of the memory hierarchy
Define the quality and depth of information : Compare the articles based on the quality and depth of information. What would be the value of each resource if you were determining an evidence-based practice
How do we understand the apparent contradiction : The policy trilemma: One could make a reasonable case that the United States in the past decade has been able to achieve all three goals of the policy trilemma.
The historical causes of islamic revolution in iran : Explain the importance of the Persian Gulf region for the world economy.Elaborate on the historical causes of Islamic revolution in Iran.
Design two separate pivot tables for the training data : Evaluate and comment on the Results. Should the data be normalized? Discuss what characterizes the components.
What are the sources of dick fulds power : What are the sources of Dick Fuld's power? What elements of power corruption are present in this case?
Define how does this change your differential and why : moderate exertion but this is only a minor complaint to her. How does this change your differential and why
Migration in the apple and computer economy : Migration in the apple and computer economy: In the apple-computer example, suppose people in the North have the right to charge an "entrance fee".
Explain about the politics and trade : Politics and trade: Suppose you are the economic adviser to a candidate running for the U.S. Congress. The candidate's district is historically a major producer

Reviews

len1634795

9/9/2017 5:00:20 AM

Presentation • Assignments are required to be submitted in either Word format (.doc, or .docx), Open Office format (.odf), Rich Text File format (.rtf) or .pdf format. Each assignment must be submitted as a single document. • Assignments should be typed using 10 or 12 point font. APA referencing style should be used. A reference list should be included with each assessment item. • All screenshots that are required should be inserted into the document in the appropriate position for each question. Screenshots that are submitted in addition to the assignment document will not be marked.

len1634795

9/9/2017 5:00:13 AM

Marking criteria Question HD DI CR PS FL 1 & 2 The answers are correct and complete, demonstrating that the student has thoroughly understood the specified dataset and the usage of XLMiner. The student supplies insightful observations. The answers are correct and complete, demonstrating that the student understood the specified dataset and the usage of XLMiner. The answers are correct and complete, demonstrating that the student understood the specified dataset and the usage of XLMiner. Answers are correct and complete, demonstrating that student understood the specified dataset. Answers are correct and complete. Answers are not correct and partially complete.

len1634795

9/9/2017 5:00:05 AM

Rationale This task assesses your progress towards meeting Learning Outcomes 1, 2 and 3: 1. Be able to identify and analyse business requirements for the identification of patterns and trends in data sets 2. Be able to appraise the different approaches and categories of data mining problems. 3. Be able to compare and evaluate output patterns It also partly addresses Learning Outcomes 4 and 5

Write a Review

Applied Statistics Questions & Answers

  Find p

P (defect Produced | expert =.01; P (defect product | veteran) = .25; P (D | New) = .06. Work Force made up of 60% experts, 30% veterans, 10% new. Find P (New | defect produced).

  Explain or predict the response variable in every regression

Explain or predict the response variable in every regression study, we use one or more explanatory variables. These variables are also called predictor variables or independent variables.

  Evaluate the standard deviation and range

Evaluate the standard deviation and range.Interpret the standard deviation and range in plain non-technical terms.

  In an analysis of hunting by african lions biologists filmed

In an analysis of hunting by African lions, biologists filmed prey captures from the safety of their vehicles.  Prey captures were then divided into a sequence of events.   One of the events is the stalk, defined as the reduction of predator-prey dis..

  What is the probability that both are red

An urn contains 6 red, 5 blue and 2 green marbles. If 2 marbles are picked at random, what is the probability that both are red ?

  An initial survey was performed right after médecins sans

An initial survey was performed right after Médecins Sans Frontières accused my brother of wrong doing. Of 1852 customers, 53 were against the aggressive tactics of Médecins Sans Frontières. After my brother was cleared by the court, a follow..

  Cw2 quantative portfolio of statistical exercises

CW2: QUANTATIVE Portfolio of statistical exercises, You should analyse the dataset and report your findings in a format suitable for publication in a journal. You should include relevant SPSS printouts with your report. Inclusion of the SPSS output i..

  Test of two means

Test of two means.

  Is there anything unusual about geographical distribution

A closer examination of the top 100 showed 55 in the Americas, 37 in Europe, and 8 elsewhere. Is there anything unusual about the geographical distribution of the world's top 100 universities?

  To predict the outcome of a county election

To predict the outcome of a county election, newspaper obtains a list of 1,095,765 registered voters in the county and wants to conduct a systematic sample with sample size 80. if we start with the 5th voter on the list, what will be the 3rd, 4th, an..

  Evaluate the study

Binge drinking and alcohol-related behaviours amongst Pacific youth: a national survey of secondary school students

  What type of variable is your outcome variable

What type of variable is your outcome variable? What kind of variable is your explanatory variable/control? Recall the early class periods and readings where we discussed ordinal, interval, and categorical variables

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd