Question: Use the data below and R studio to answer the questions: The dependent variable is coded as y=1 if the customer used a coupon and
Use the data below and R studio to answer the questions:
- The dependent variable is coded as y=1 if the customer used a coupon and 0 if not. Suppose that the only information available to help predict whether the customer will use the coupon is the credit card status, coded as x=1, if the customer has the store's credit card and x=0 if not. a.Is the use of a coupon independent of the card status?
- Fit the logistic regression model to predict the chances of a customer to use the coupon using as independent variable the card status. Paste the summary of the model in your report.
- Use the estimated logistic regression to calculate the probability that a customer who does not have the stores credit card uses the coupon.
- Use the estimated logistic regression to calculate the probability that a customer who has the store's credit card uses the coupon.
- Compare the estimated probabilities in question 2 and 3. What can you conclude about the effect of credit card status on the chances of a customer to use the coupon.
- Fit a logistic regression to predict the chances of a customer to use a coupon using as independent variables their annual spending and the credit card status. a.State the estimated logistic regression
- Use the estimated logistic regression to estimate the probability that a customer with an annual spending of $4000 who has the store's credit uses the coupon.
- Use the estimated logistic regression to estimate the probability that a customer with an annual spending of $5000 who has the store's credit uses the coupon.
- Compare the estimated probability calculated in questions b and c. What can you conclude about the effect of the annual spending on the chances of a customer to use the coupon?
- Use the estimated equation and a threshold of 50% to calculate the true positive rate and the false positive rate. Comment on the performance of the model at this threshold.
- Calculate the AUC and comment on the general performance of this model.
| Customer | Spending | Card | Coupon |
| 1 | 2.291 | 1 | 0 |
| 2 | 3.215 | 1 | 0 |
| 3 | 2.135 | 1 | 0 |
| 4 | 3.924 | 0 | 0 |
| 5 | 2.528 | 1 | 0 |
| 6 | 2.473 | 0 | 1 |
| 7 | 2.384 | 0 | 0 |
| 8 | 7.076 | 0 | 0 |
| 9 | 1.182 | 1 | 1 |
| 10 | 3.345 | 0 | 0 |
| 11 | 2.14 | 1 | 0 |
| 12 | 3.255 | 0 | 1 |
| 13 | 1.512 | 0 | 0 |
| 14 | 2.148 | 0 | 1 |
| 15 | 6.737 | 0 | 0 |
| 16 | 6.486 | 0 | 0 |
| 17 | 1.307 | 0 | 0 |
| 18 | 3.47 | 1 | 0 |
| 19 | 2.936 | 0 | 0 |
| 20 | 6.404 | 0 | 1 |
| 21 | 2.229 | 0 | 0 |
| 22 | 2.933 | 0 | 0 |
| 23 | 2.118 | 0 | 0 |
| 24 | 2.05 | 0 | 0 |
| 25 | 4.998 | 0 | 1 |
| 26 | 1.394 | 0 | 0 |
| 27 | 3.993 | 1 | 1 |
| 28 | 2.059 | 0 | 1 |
| 29 | 1.677 | 0 | 0 |
| 30 | 2.229 | 0 | 1 |
| 31 | 1.138 | 0 | 0 |
| 32 | 2.933 | 1 | 0 |
| 33 | 5.365 | 1 | 1 |
| 34 | 5.365 | 0 | 0 |
| 35 | 6.179 | 0 | 0 |
| 36 | 1.98 | 1 | 0 |
| 37 | 1.058 | 1 | 0 |
| 38 | 6.851 | 1 | 1 |
| 39 | 1.124 | 0 | 0 |
| 40 | 1.911 | 0 | 0 |
| 41 | 3.253 | 0 | 0 |
| 42 | 1.839 | 0 | 0 |
| 43 | 1.657 | 1 | 0 |
| 44 | 1.075 | 0 | 0 |
| 45 | 3.566 | 0 | 0 |
| 46 | 2.118 | 0 | 0 |
| 47 | 1.554 | 1 | 0 |
| 48 | 4.631 | 0 | 0 |
| 49 | 4.345 | 1 | 1 |
| 50 | 4.004 | 1 | 1 |
| 51 | 1.068 | 1 | 1 |
| 52 | 2.421 | 0 | 0 |
| 53 | 4.414 | 0 | 0 |
| 54 | 3.386 | 1 | 1 |
| 55 | 1.677 | 1 | 0 |
| 56 | 2.05 | 1 | 1 |
| 57 | 2.323 | 1 | 1 |
| 58 | 5.501 | 0 | 0 |
| 59 | 3.345 | 0 | 1 |
| 60 | 3.318 | 1 | 1 |
| 61 | 4.721 | 0 | 1 |
| 62 | 1.662 | 0 | 1 |
| 63 | 2.936 | 1 | 0 |
| 64 | 2.049 | 0 | 0 |
| 65 | 2.313 | 0 | 1 |
| 66 | 6.851 | 0 | 0 |
| 67 | 2.291 | 0 | 0 |
| 68 | 3.47 | 1 | 1 |
| 69 | 3.253 | 0 | 0 |
| 70 | 2.059 | 0 | 0 |
| 71 | 2.678 | 1 | 1 |
| 72 | 2.323 | 1 | 0 |
| 73 | 1.878 | 1 | 0 |
| 74 | 2.678 | 1 | 1 |
| 75 | 6.179 | 1 | 1 |
| 76 | 3.411 | 1 | 1 |
| 77 | 5.991 | 0 | 1 |
| 78 | 7.076 | 1 | 1 |
| 79 | 3.255 | 1 | 1 |
| 80 | 2.148 | 1 | 0 |
| 81 | 5.501 | 1 | 1 |
| 82 | 5.991 | 1 | 1 |
| 83 | 2.372 | 1 | 0 |
| 84 | 3.995 | 1 | 0 |
| 85 | 2.135 | 0 | 1 |
| 86 | 6.737 | 1 | 1 |
| 87 | 6.486 | 1 | 1 |
| 88 | 2.429 | 1 | 0 |
| 89 | 4.701 | 1 | 1 |
| 90 | 6.404 | 1 | 0 |
| 91 | 1.13 | 1 | 0 |
| 92 | 1.911 | 1 | 1 |
| 93 | 4.959 | 1 | 1 |
| 94 | 6.073 | 1 | 1 |
| 95 | 1.403 | 1 | 0 |
| 96 | 3.318 | 0 | 0 |
| 97 | 2.421 | 1 | 0 |
| 98 | 6.073 | 0 | 0 |
| 99 | 2.63 | 1 | 0 |
| 100 | 3.411 | 0 | 1 |
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