Explain the steps that you will take to develop a model to predict which customers in future will spend
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Explain the steps that you will take to develop a model to predict which customers in future will spend

5- There are 500 client records in the first worksheet of the Excel file (provided for this assessment) who have shopped many special products from an e-Business website. Each record includes data on types of product purchased (between 1-5), purchase amount ($), age, gender, family size of the customer, whether the client has a membership and whether the customer has a discount card. 

a) Explain the steps that you will take to develop a model to predict which customers in future will spend over $800. (Write your answer as: Step 1-… Step 2- … and so on. You don’t need to write or run any R code).

b) Develop a predictive model to predict the spend amount of a new male customer with age of 30 who is living in a family with size 2 and is not a member and hold a discount card type 2.

Hint
BusinessPredictive modeling is a part of predictive analytics where the performance of the unit in a sample is compared with attributes of the unit. The main objective of the model is to predict the performance of a similar unit in other samples. This is done to predict the trends, probability of scores, credit card frauds, etc. Predictive modeling is different from forecasting as it gives more ex...

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