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MI Assignment1 2 Case Study

The document describes a dataset containing customer transactions for a retailer between December 2010 and December 2011. It defines customer churn as those who have not made a purchase between September and December 2011 after making purchases between December 2010 and August 2011. The problem is to build a predictive model to predict customer churn. The tasks outlined are to create target variables for churn, features from transactions, build a decision tree model using ID3, evaluate the model, implement SVM and ANN models for comparison to the decision tree.

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Koushi
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45 views1 page

MI Assignment1 2 Case Study

The document describes a dataset containing customer transactions for a retailer between December 2010 and December 2011. It defines customer churn as those who have not made a purchase between September and December 2011 after making purchases between December 2010 and August 2011. The problem is to build a predictive model to predict customer churn. The tasks outlined are to create target variables for churn, features from transactions, build a decision tree model using ID3, evaluate the model, implement SVM and ANN models for comparison to the decision tree.

Uploaded by

Koushi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MI - Assignment 1&2

Building a predictive model to predict the likelihood of a customer


churning

Dataset Link
.csv file for the same will be shared with the students

Dataset Description
The data provides historical customer transactions for a retailer, for purchases made on their e-
commerce platform between Dec 2010 to Dec 2011. Customers are uniquely identified by their
Customer ID (Col G).

Problem Statement
Assume that the company has been experiencing high customer churn and a reduction in repeat
customers. As part of this case study, you are required to build a predictive model to predict the
likelihood of a customer churning

Churn Definition (Target Variable definition)


For this problem, the churn should be defined as follows:

The training data should include all customers who have made a transaction between 1st Dec 2010 to
31st Aug 2011. Customers from this set who have NOT made any subsequent purchase in the period
Sep 2011 to Dec 2011 should be labeled as “Churn”. All other customers with purchases made during
this follow-up period should be labelled as “Not Churn”

A. Target variable creation (based on churn definition provided) – 2M


B. Customer level feature creation, from transaction dataset – 2M
C. Construct a Decision Tree using ID3 algorithm and classify whether the customer will
churn/not Churn. – 4M
D. Investigate whether ID3 can be used for constructing oblique DT or not? – 2M
E. Evaluation of the model – 2M
F. Use the above dataset to implement SVM and ANN for training and testing purposes – 5M
G. Construct a comparative table for DT, SVM and ANN - 3M

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