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Pdf&rendition 1

The document outlines a process for conducting sensitivity analysis on customer data using Python in Google Colab. It includes steps for importing libraries, creating sample customer data, defining a function to calculate customer value, performing sensitivity analysis on income and spending score changes, and visualizing the results. The final output is a line plot showing the effects of income and spending changes on customer value.

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antonyvijoshvijay
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13 views3 pages

Pdf&rendition 1

The document outlines a process for conducting sensitivity analysis on customer data using Python in Google Colab. It includes steps for importing libraries, creating sample customer data, defining a function to calculate customer value, performing sensitivity analysis on income and spending score changes, and visualizing the results. The final output is a line plot showing the effects of income and spending changes on customer value.

Uploaded by

antonyvijoshvijay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CUSTOMER DATA USING SENSITIVITY ANALYSIS IN COLAB

Step 1: Import Necessary Libraries

import pandas as pd
import numpy as np
import matplotlib.pyplot as plt
import seaborn as sns

Step 2: Create Sample Customer Data

# Create sample customer data


data = {
'CustomerID': range(1, 101),
'Age': np.random.randint(18, 70, size=100),
'Income': np.random.randint(30000, 100000, size=100),
'SpendingScore': np.random.randint(1, 100, size=100)
}

customers_df = pd.DataFrame(data)
customers_df.head()

Step 3: Define a Function for Sensitivity Analysis

def customer_value(income, spending_score):


return (income * 0.5) + (spending_score * 0.5)

# Calculate Customer Value


customers_df['CustomerValue'] = customers_df.apply(lambda x: customer_value(x['Income'], x['SpendingScore']),
axis=1)
CUSTOMER DATA USING SENSITIVITY ANALYSIS IN COLAB
Step 4: Perform Sensitivity Analysis

# Function to perform sensitivity analysis


def sensitivity_analysis(df, income_change, spending_change):
results = []

for index, row in df.iterrows():


base_value = row['CustomerValue']

# Change income
new_income = row['Income'] * (1 + income_change)
income_value = customer_value(new_income, row['SpendingScore'])

# Change spending score


new_spending = row['SpendingScore'] * (1 + spending_change)
spending_value = customer_value(row['Income'], new_spending)

results.append({
'CustomerID': row['CustomerID'],
'BaseValue': base_value,
'IncomeEffect': income_value,
'SpendingEffect': spending_value
})

return pd.DataFrame(results)

# Perform analysis with 10% increase in income and spending score


sensitivity_df = sensitivity_analysis(customers_df, 0.1, 0.1)
sensitivity_df.head()
CUSTOMER DATA USING SENSITIVITY ANALYSIS IN COLAB
Step 5: Visualize Results

# Visualization
plt.figure(figsize=(12, 6))
sns.lineplot(data=sensitivity_df, x='CustomerID', y='BaseValue', label='Base Value', marker='o')
sns.lineplot(data=sensitivity_df, x='CustomerID', y='IncomeEffect', label='Income Effect', marker='o')
sns.lineplot(data=sensitivity_df, x='CustomerID', y='SpendingEffect', label='Spending Effect', marker='o')
plt.title('Sensitivity Analysis of Customer Value')
plt.xlabel('Customer ID')
plt.ylabel('Customer Value')
plt.legend()
plt.show()

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