Assignment: Learning Basics (25 Points) Due Date is Thursday, Sept 22 (before class) Please submit your assignment as a Power Point (PDF). Q1: Software (0 Points) Watch the following video (nothing to turn in) https://www.youtube.com/watch?v=fJ69GBOpRYg Q2: Plotting (10 points) a: Housing Bubble In the file called House_price.xls you provided with a long time series (approx. 100 years) of House Price Index in the US and an Index of Building costs. These data are obtained from S&P/Case-Shiller Home Price Indices web site. Plot the house price index over time. b: Seasonality In the file Progresso.xls, you are provided average weekly sales and price for Progresso soup for the NY market. These data are aggregated over several stores. Plot both the sales and price data on the same graph (Dual Axis Graph). Submit just the graphs, no write up needed. Q3: Value of In-house Credit Card (15 points) Suppose you are working as a consultant for an internet retailer to help them develop an integrated customer management program. As part of the broad endeavor, the firm had introduced an in-house credit card (e.g. Amazon Visa Card) two years ago. However, senior management has raised doubts about the effectiveness of this program due to its limited penetration. The firm currently has 108 million customers and you are provided with a random sample of approximately 100,000 customers (see the file internet-retail.jmp). Objective 1: Divide the customer base on the basis of life-to-date total dollars (totdol) at the firm as follows: Platinum: Top 10% customers Gold: Top 50 to 90% Silver: Bottom 50% Create a new variable \"Loyalty\" which equals 1 for Platinum customer, 2 for Gold, and 3 for Silver customers. Objective 2: Using information on only the following three variables make a recommendation whether the firm should abandon or keep their credit card program. (1) Life-to-date total dollars (2) Loyalty (from above) (3) Card Dummy for whether customers have the in-house credit card Login Required user id password Login Login Required user id password Login