Question: 3 . You are given a dataset named 4 3 5 3 ) from a retail company with the following features: CustomerID: Unique identifier for
You are given a dataset named from a retail company with the following features:
CustomerID: Unique identifier for each customer
Age: Age of the customer
Gender: Gender of the customer MaleFemaleOther
Income: Annual income of the customer
PurchaseAmount: Total amount spent by the customer in a year
ProductCategory: Category of the product purchased eg Electronics, Clothing, Food, etc.
PurchaseFrequency: Number of purchases made by the customer in a year
Your task is to analyze this dataset to extract meaningful insights and answer the following questions:
Data Preprocessing
a Describe the steps you would take to clean and preprocess this dataset.
b Identify any missing or inconsistent data and explain how you would handle them.
Exploratory Data Analysis
a What visualizations would you create to understand the distribution of Age and Income?
b How would you analyze the relationship between Gender and PurchaseAmount?
Customer Segmentation
a Describe the clustering algorithm you would use and explain your choice.
b After clustering, what metrics would you use to evaluate the effectiveness of your segmentation?
Predictive Modeling
a Assume you want to predict the PurchaseAmount based on other features. Which regression algorithm would you choose and why?
b What metrics would you use to assess the performance of your predictive model?
c How would you handle overfitting in this context?
Ethical Considerations
a Discuss any ethical concerns that might arise from using this dataset for data mining.
b Suggest best practices for ensuring data privacy and security when analyzing customer data.
Instruction
Answer each section in detail, providing code snippets or pseudocode where applicable.
Justify your choices with appropriate reasoning and examples from the dataset.
Show all necessary calculations and provide explanations for any assumptions made.
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