6.2 Predicting Software Reselling Profits. Tayko Software is a software catalog firm that sells games and education software. It started out as a software manufacturing and then added third-party titles to its offering. It recently revised its collection of items in a new catalog, which it mailed out to its customers. This mailing yielded 1000 purchases. Based on these data, Tayko wants to devise a model for predicting the spending amount that a purchasing customer will yield. The file Tayko.xls contains information on 1000 purchases. Table 6.4 describes the variables to be used in the problem (the Excel file contains additional variables). Table 6.4 DESCRIPTION OF VARIABLES FOR TAYKO SOFTWARE EXAMPLE FREQ Number of transaction in the preceding year LAST_UPDATE Number of days since the last update to customer record WEB Whether customer purchased by Web order at least once GENDER Male or Female ADDRESS_RES Whether it is a residential address ADDRESS_US Whether it is a U.S. address SENDING (response) Amount spent by customer in test mailing (in dollars)