Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Project 1: Predicting Catalog Demand
Step 1: Business and Data Understanding
Key Decisions:
1. What decisions need to be made?
Ans:- Whether to print and send catalogs to the new 250 customers or not.
2. What data is needed to inform those decisions?
Ans:- The company will print catalog only if the expected profit exceeds $10,000. To find out the profit, one
needs revenues, probability of ordering and costs. The profit is revenues times the probability of customer
ordering less the costs of printing and sending out. Cost of printing and probability of customer ordering are
provided. As for the revenues, they are dependent on two factors found by multiple linear regression namely
customer segment and number of products ordered.
