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Problem 1: Clustering A leading bank wants to develop a customer segmentation to give promotional offers to its customers

Statistics Apr 27, 2021

Problem 1: Clustering A leading bank wants to develop a customer segmentation to give promotional offers to its customers. They collected a sample that summarizes the activities of users during the past few months. You are given the task to identify the segments based on credit card usage.

1.1 Read the data, do the necessary initial steps, and exploratory data analysis (Univariate, Bi-variate, and multivariate analysis).

1.2 Do you think scaling is necessary for clustering in this case? Justify

1.3 Apply hierarchical clustering to scaled data. Identify the number of optimum clusters using Dendrogram and briefly describe them

1.4 Apply K-Means clustering on scaled data and determine optimum clusters. Apply elbow curve and silhouette score. Explain the results properly. Interpret and write inferences on the finalized clusters.

1.5 Describe cluster profiles for the clusters defined. Recommend different promotional strategies for different clusters.

Problem 2: Logistic Regression You are hired by a tour and travel agency which deals in selling holiday packages. You are provided details of 872 employees of a company. Among these employees, some opted for the package and some didn't. You have to help the company in predicting whether an employee will opt for the package or not on the basis of the information given in the data set. Also, find out the important factors on the basis of which the company will focus on particular employees to sell their packages.

2.1 Data Ingestion: Read the dataset. Do the descriptive statistics and do null value condition check, write an inference on it. Perform Univariate and Bivariate Analysis. Do exploratory data analysis.

2.2 Do not scale the data. Encode the data (having string values) for Modelling. Data Split: Split the data into train and test (70:30). Apply Logistic Regression.

2.3 Performance Metrics: Check the performance of Predictions on Train and Test sets using Accuracy, Confusion Matrix, Plot ROC curve and get ROC_AUC score for the Logistic Regression model.

2.4 Inference: Basis on these predictions, what are the insights and recommendations.

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