Question: 2. A bank is looking at customer value which is the numerical value placed on a customer. They're looking at these customers with several different

2. A bank is looking at customer value which is the numerical value placed on a customer. They're looking at these customers with several different factors and potentially too much to make into a cohesive regression a) Run a regression to predict customer value with Average Daily Balance, Interest Paid, Cash Advances, Balance Transferred, Age Group, and Credit Limit. What weird stuff do you notice in this model (you don't need to act on it, just list it) a. There is no pvalues for the variables. b. There Adj Rsqaured is 1 b) With those same x-variables, run a PCA/FA. What variables belong to what factors (this is one of the few times I will accept a screenshot only answer) a. Saved on Macbook c) Run a regression measuring Customer Value with your new rotated components. Describe the results of this new model

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!