– BIG DATA & BUSINESS ANALYTICS

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1.    Briefly answer the following in the box below. What are classification techniques for data analytics? Give an example of a technique and its application. Briefly describe its working. How would you measure the accuracy of a technique? What is the primary difference between a classification technique and a clustering technique?

2.    MARKET BASKET ANALYSIS. Download the data file wednesday.csv. Open the file in Excel and examine the data. The first column contains the products (brand names of Scotch) sold in a speciality liquor store. Every other column is transaction information of a particular customer. If a customer bought a particular brand then a 1 is entered in that row otherwise a 0 is entered. Essentially, each column is a basket of products bought by a particular customer on a particular day.

3.    Import the file into R Studio.
4.    How many different types of products are in the dataset?

5.    How many customers are in the data set?

6.    Your task is to group together products into clusters based on the similarity in the buying patterns of customers by following the steps below:
7.    Cluster the products according to the customer transactions into four groups using hierarchical clustering. Use the main argument to the Plot function to create a title for your plot with YOUR NAME instead of SHASHI KAPARTHI as shown below.

> plot(fit, main=”Designed by SHASHI KAPARTHI”)
Note: Use your name instead of SHASHI KAPARTHI.

8.    Snip and paste the dendrogram here:

9.    Which products belong in each group:
Group 1    Group 2    Group 3    Group 4


•    •    •        •  •  •  •  •      •  •  •  •  •      •  •  •  •  •

10.    Copy and paste the R programming code you used in the box below:

INSERT CODE HERE

11.    The retailer wants to shelf the products that are bought together frequently, next to each other, to encourage additional sales. Which item should be stocked closest to “Glenlivet?”

Chivas.Regal    1    0    0    1    1    0    0    0    0
Dewar.s.White.Label    0    0    0    0    0    0    0    1    0
Johnnie.Walker.Black.Label    0    1    0    1    1    0    0    0    0
J…B    0    0    0    0    0    0    0    1    0
Johnnie.Walker.Red.Label    1    0    0    1    0    0    0    1    0
Other.Brands    1    0    0    1    0    1    0    1    0
Glenlivet    1    0    0    1    0    0    1    0    0
Cutty.Sark    0    0    0    1    0    0    0    0    0
Glenfiddich    1    0    0    0    0    0    0    0    0
Pinch..Haig.    0    0    0    0    0    0    0    0    0
Clan.MacGregor    0    0    0    0    0    0    0    0    0
Ballantine    0    0    1    0    0    0    0    0    0
Macallan    0    0    0    0    0    1    0    0    0
Passport    0    0    0    1    0    0    0    0    1
Black…White    0    0    0    0    0    0    0    0    0
Scoresby.Rare    0    0    0    0    0    0    0    0    0

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