Answered You can hire a professional tutor to get the answer.
Tayko software is a software catalog firm that sells games and educational software. It recently revised its collection of items in a new catalog,...
SPENDING (response)
Amount spent by customer in test mailing (in dollars)
Use SAS for the analysis. Copy and paste the output nicely.
• Partition the 1000 records into training and validation datasets. The first 800 observations are to be used for model estimation/training.
• Run a multiple linear regression model (refer to this as MODEL 1) of SPENDING vs. LAST_UPDATE, WEB, GENDER, ADDRESS_RES and ADDRESS_RES. Interpret the results.
• Add FREQ to the MODEL 1 of spending (refer to this as MODEL 2). Interpret the results.
• Which model is better? Why?
• Evaluate the predictive accuracy of the two models by examining the performance on the validation dataset. Hint: Use RMSE.
• Based on the best model, what type of customer is most likely to generate more revenue?
