DATA MINING-5963

1.

2.

Using Statexplore node , the worth of Recency(last_pur) , Frequency (num_pur) and monetary (Tot_dollars) can be found against the target variable (Last_response). Last_pur has the highest worth , followed by (num_pur) and then the (tot_dollars). Thus while creating bins for RFM , recency should be first , followed by frequency and then monetary. With the number 555 being the most important , followed by 554, 553549,548. With 111 being the least important.

3. Recency (transformedLast_pur)- Transformed variable from Last_pur

(i.e transformedLast_pur = -1*last_pur)

Number of purchases (Frequency)

Total dollars (monetary)

Bins Created :

Using PROC FREQ :

Frequency plots for RFM1 are shown below

4.

The Break even cut-off is 1/12 = 0.08333 , Thus 34 cells/bins exceed the break-even cutoff. All the values that exceed the 8.33% level are reported above, for a yes Last_Response=1.

ONKAR KRISHNADEO JADHAVPage 1