Reference no: EM132296289

Part 1: Frequent Flyers and Marketing

Overview - The dataset below EastWestAirlinesCluster.csv contains information on 3999 passengers who belong to an airline's frequent flier program.

For each passenger, the data include information on their mileage history and on different ways they accrued or spent miles in the last year. The goal is to try to identify clusters of passengers that have similar characteristics for the purpose of targeting different segments for different types of mileage offers.

In R Your Job is To:

• Apply hierarchical clustering with Euclidean distance and Ward's method. Make sure to normalize the data first. How many clusters appear?
• Tell me: What would happen if the data were not normalized?
• Compare the cluster centroid to characterize the different clusters, and try to give each cluster a label.
• Check the stability of the clusters, by removing a random 5% of the data (by taking a random sample of 95% of the records), and repeat the analysis. Does the same picture emerge?
• Use k-means clustering with the number of clusters that you found above. Does the same picture emerge?
• Tell me: Which clusters would you target for offers, and what types of offers would you target to customers in that cluster?

Part 2: Classifying Internet Discussion Posts

Overview - In this problem, you will use the data from the chapter assigned for this week, particularly problem 20.6 Online Discussions on Autos and Electronics, in which the task is to develop a model to classify documents as either auto-related or electronics-related.

In R Your Job is To:

• Load the above file into R and create a label vector.
• Preprocess the documents. Explain what would be different if you did not perform the "stemming" step.
• Use the lsa package from R to create 10 concepts. Explain what is different about the concept matrix, as opposed to the TF-IDF matrix.
• Using this matrix, fit a predictive model (different from the model presented in the chapter illustration) to classify documents as autos or electronics. Compare its performance to that of the model presented in the chapter illustration.

Attachment:- Assignment Files.rar