Analyze some Data

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Please read the attached case study and answer the following questions (you do not need to answer the questions from the case study). Please explain all your answers in details, otherwise no point will be given. You also need to upload all the excel files where you have done data analysis, this is a mandatory requirement.

1. If you do not do any choice modeling, then which top 20% customers will you target from the main sample? Why?

2. a) Now develop an Ordinary linear regression model using the main sample data. Based on the regression output which top 20% customers will you choose? Assume that the only decision variable in this regard is the choice probability. Also, in simple English clearly interpret your regression output, do not use any mathematical jargon while interpreting.

b) Further develop a Logistic regression model and and re-do question 2a. How is your answer different from 2a?

c) Now, in question 2b assume that the decision variable is expected revenue instead of only choice probability. How would your answer change from 2b?

3.a) Now apply your regression model from 2a to holdout sample. Choose top 20% customers in terms of i) choice probability and ii) expected revenue.

b) Now, instead of applying the regression model from 2a, develop an original linear regression model using the data from the holdout sample. How would your answers differ from 3a (i) and 3a (ii)?

c) If you are the Marketing manager of the BBB club, in order to work target the customers from the holdout sample will you develop an original regression model? Or can you rely on the regression model developed from the main sample and just apply the equation in the holdout sample context?

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