Q2: Build your Model (8 points) Target = Interval Variable (Rev_Total) A bank wants to understand how customer banking habits contribute to revenues and profitability. The bank has customer age and bank account information, e.g., whether the customer has a savings account, whether the customer has received bank loans, and other indicators of account activity. Your task is to build a model that allows the bank to predict profitability for a given customer. A surrogate for customer profitability available in our data set is the Total Revenue a customer generates through their accounts and transactions. The resulting model will be used to forecast bank revenues and guide the bank in future marketing campaigns. Data = Revenue.sas7bdat The data set (in SAMPSIO2) contains information on 7,420 bank customers: Rev_Total Total revenue generated by the customer over a 6-month period. Bal_Tota Total of all account balances, across all accounts held by the customer. Offer An indicator of whether the customer has received a special promotional offer in the previous one-month period. Offer=1 if the offer was received, Offer=0 if it was not. AGE The customers age. CHQ Indicator of debit card account activity. CHQ=0 is low (or zero) account activity, CHQ=1 is greater account activity. CARD Indicator of credit card account activity. CARD=0 is low or zero account activity, CARD=1 is greater account activity. SAV1 Indicator of primary savings account activity. SAV1=0 is low or zero account activity, SAV1=1 is greater activity. LOAN Indicator of personal loan account activity. LOAN=0 is low or zero account activity, LOAN=1 is greater activity. MORT Indicator of mortgage account tier. MORT=0 is lower tier and less important to the banks portfolio. MORT=1 is higher tier and indicates the account is more important to the banks portfolio. INSUR Indicator of insurance account activity. INSUR=0 is low or zero account activity, INSUR=1 is greater activity. PENS Indicator or retirement savings (pension) account tier. PENS=0 is lower balance and less important to banks portfolio. PENS=1 is higher tier and of more importance to the banks portfolio. Check Indicator of checking account activity. Check=0 is low or zero account activity, Check=1 is greater activity. CD Indicator of certificate of deposit account tier. CD=0 is lower tier and of less importance to the banks portfolio. CD=1 is higher tier and of more importance to the banks portfolio. MM Indicator of money market account activity. MM=0 is low or zero account activity, MM=1 is greater activity. Savings Indicator of savings accounts (other than primary) activity. Savings=0 is low or zero account activity, Savings=1 is greater activity. AccountAge Number of years as a customer of the bank. Data Partition = Default (40% Training / 30% Validation / 30% Test) Model Selection Criteria = Average Squared Error and BIC (Test Data) 1. Write a model building process diary. It describes everything you have done including the reason, the outcome, and your thoughts. e.g., Stage I (Exploring Data) Stage II (Model Development) Model 1 (Regression Tree Model) Model 2 (Regression Model) : (all variations of each model type) Stage III (Model Comparison) Stage IV (Final Model and Interpretation) 2. Organize your output and/or SPK files according to the diary. Make sure that you order your results (numbered) according to the diary.