Examine the lift chart and classification table for the tree

Assignment Help Applied Statistics

Reference no: EM132343860

Assignment -

Use EbayAuctions (attached) dataset to complete this homework. It contains 1972 auctions on eBay during 2004. We are trying to model and predict competitive auctions as the outcome variable. An auction is competitive if it garners two or more bids. Using the input variables we will determine whether the auction will be competitive or not.

Preprocessing: Create dummy variables for the following categorical predictors including Category, Currency, EndDay and Duration. Split the data into the usual training and validation sets.

1. Fit the classification tree using the best-pruned tree. Set the minimum number of records in a terminal node to 50 and the maximum number of levels to seven. Write the results in terms of rules. See the video listed in the weekly lecture. If you had to reduce the number of predictors which variable would be best to take out?

2. Is the model practical for predicting the outcome of a new auction? Why or why not?

3. Describe the interesting and uninteresting information provided by the rules.

4. Fit another classification tree with the same settings. This time use only the two predictor variables you think best predict the outcome of a new auction. List the rules from the resulting tree. Use the smallest set of rules required for the classification.

5. Plot the tree on a scatter plot using Excel with the predictor variables on each axis. Use different colors or symbols to show competitive and non-competitive auctions. If the plot is too compressed, use the log scale on the axis. Draw lines using Excel at the values that create splits. Does the split seem reasonable with respect to the meaning of the predictor variables? Does the split do a good job of separating the two classes?

6. Examine the lift chart and classification table for the tree. What can you say about the predictive performance of the model?

7. What can you conclude about the chances of an auction getting at least two bids and the relationship to the duration, opening price, ending day and currency? What is the seller strategy you think will lead to a competitive auction? Why do you think that?

Attachment:- Assignment Files.rar

Reference no: EM132343860

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