Data on 10,000 customers were collected. Among the variables collected are: Age age of customers
Question:
Data on 10,000 customers were collected. Among the variables collected are: • Age – age of customers (in years) • Married – the marital status of the customer (True/False) • Duration – the duration the customer with the company • Churned_Contacts – the number of customer’s contacts that have churned • Churned – whether the customer has churned or not (True/False)
Based on the logistic regression model, the following equation is derived: Probability of churning = 3.50 – 0.16 Age + 0.38 Churned_contacts Table 1 shows the testing results.
Table 1. Estimated Churn Probabilities Age (Years) Churned_Contacts Probability of Churning
| customer | age (yeasrs ) | churned_contacs | probability of churning | |
| 1 | 50 | 1 | 0.016 | |
| 2 | 50 | 3 | 0.034 | |
| 3 | 50 | 6 | 0.098 | |
| 4 | 30 | 1 | 0.285 | |
| 5 | 30 | 3 | 0.460 | |
| 6 | 30 | 6 | 0.727 | |
| 7 | 20 | 1 | 0.664 | |
| 8 | 20 | 3 | 0.808 | |
| 9 | 20 | 6 | 0.930 |
q1 : Elaborate the equation above.
q2: Describe what you understand on the results of this logistic regression model by describing the correlation(s) among the variables ?
Expert Answer:
q1 Solution The logistic regression model is Probability of churning35016Age 038churnedcontacts In this model Age and churnedcontacts are explanatory ... View the full answer
