Does it make sense to create an ensemble model from several decision tree models? These decision tree models are created by different subsets of variables. ... View more

Does Neural Network node use all input variables for creating a model? ... View more

I used a logistic regression to build a model to score the value of each customer. Now suppose we have scored 10K customers and plan to run a marketing campaign on them. Two pilot programs had been conducted and the outcomes are summarized below. Program 1: Spent $.40 on each customer of first 1K customers. Got 10 purchases and $.45/customer profit. Spent $.30 on each customer of next 3K customers. Got 20 purchases and $.28/customer profit. Spent $.20 on each customer of next 5K customers. Got 40 purchases and $.22/customer profit. Spent $.10 on each customer of next 2K customers. Got 10 purchases and $.12/customer profit. Program 2: Spent $.40 on each customer of first 1K customers. Got 10 purchases and $.45/customer profit. Spent $.30 on each customer of next 2K customers. Got 10 purchases and $.32/customer profit. Spent $.20 on each customer of next 7K customers. Got 50 purchases and $.20/customer profit. Spent $.10 on each customer of next 1K customers. Got 5 purchases and $.09/customer profit. Based on these 2 pilot program outcomes, I would like to see the optimal allocation of marketing spend to maximize the purchases and profit. That each, how many customers need to allocate to spend $.4 group, how many to spend $.3 group. I don't know which math/statistics methods I should use to solve this problem. ... View more

I used a logistic regression to build a model to score the value of each customer. Now suppose we have scored 10K customers and plan to run a marketing campaign on them. Two pilot programs had been conducted and the outcomes are summarized below. Program 1: Spent $.40 on each customer of first 1K customers. Got 10 purchases and $.45/customer profit. Spent $.30 on each customer of next 3K customers. Got 20 purchases and $.28/customer profit. Spent $.20 on each customer of next 5K customers. Got 40 purchases and $.22/customer profit. Spent $.10 on each customer of next 2K customers. Got 10 purchases and $.12/customer profit. Program 2: Spent $.40 on each customer of first 1K customers. Got 10 purchases and $.45/customer profit. Spent $.30 on each customer of next 2K customers. Got 10 purchases and $.32/customer profit. Spent $.20 on each customer of next 7K customers. Got 50 purchases and $.20/customer profit. Spent $.10 on each customer of next 1K customers. Got 5 purchases and $.09/customer profit. Based on these 2 pilot program outcomes, I would like to see the optimal allocation of marketing spend to maximize the purchases and profit. That each, how many customers need to allocate to spend $.4 group, how many to spend $.3 group. I don't know which math/statistics methods I should use to solve this problem. ... View more

I would like to know how you create good predictor variables for a regression model. Here is a scenario: Suppose a web site would like to build a regression model to predict the conversion rate for each product listed in the web site. We have two price information. First is the web site's price for each product(PRICE). Second is the lowest price among all competitors(LOWEST_PRICE). There are many other variables which can be used as predictor variables. But let's focus on PRICE and LOWEST_PRICE here. I want to know if you will create additional predictor variables based on these 2. If so, how? ... View more

If X and Y has very very low correlation, then regression coefficient must close to zero. If X and Y has good correlation, the regression coefficient can be any value. Are the above statements true? ... View more