Write a data mining application plan that can be implemented using Logistic Regression or Discriminant Analysis. Clearly identify and define the categorical outcome variable (Y) and at least five predictors (X1,X2, X3, X4, X5) that can be used to classify records into different categories of the Y variable. You can use your knowledge of consumer behavior, customer relationship management and marketing to come up with meaningful and useful Y and X variables.
Assume each record represents a customer of a convenience store near your current residence and each of the X variables represents a characteristic of the customer. Clarify how one could collect data about at least 100 customers on your proposed Y and X variables to implement your plan.
To clarify your plan, you are encouraged to create a spreadsheet of sample data and even run the appropriate data mining procedure on the data and then attach your Excel file as an attachment to your comment in this forum.
What kind of businesses and business professionals could benefit from using your proposed application? What could be some of these potential benefits? In your plan, explain which of these techniques might be most appropriate and why.
If it is impossible to tell which of these methods might be able to perform best without trying and evaluating each one of them, explain, using concepts from chapter 5, how you could evaluate and compare the performance of these different data mining methods. Your plan should be written using 500 to 750 words.