Logistic Regression Demo: dmdata2 and dmdata3 Bankloan Assignment: subscribe_training and subscribe_validate

Purpose Steps to follow with the logistic regression procedure This follows the initial propensity to buy from the direct marketing modules

Data Preparation 1 1. Compare the two files that must have the same measure indicator 2. Analyse response frequency from the training file 3. Determine file size from split 4. Determine break-even point (FC/GM) available from the SM Template.

Data Preparation Trainining 2 1. In the Subscribe_training, response2 is coded 2 = non-respondent and 1 = respondent. You must recode directly or in another variable so that non-respondent = 0 and respondent = 1. Change variable labels. 2. Transform  Random number generator  Set starting value  Fix value = 9-digit student id. 3. Split file for training and testing: Compute select = rv.bernouilli (0.70) 4. Print your log file into SM

Logistic Regression Training 1 1. Analyse  Regression  Binary Regression 2. Enter dependent and independent variables 3. Method = Forward LR 4. Enter select into Selection variable

Logistic Regression Training 2 1. Categorical  Enter non-scale variables into the Categorical Covariates 2. Change Contrast (indicator, First reference) and click Change

Logistic Regression Training 3 Save 1. Predicted Values = Probabilities 2. Export XML Model (Name model) Option 1. Display at last step 2. Classification cutoff % Run

Logistic Regression Training 3 1. Paste Regression Log syntax into SM 2. Enter classification matrix into SM 3. Create Deciles from Predicted Value using Visual Binning 4. Compare Means  Means  Analyse Resp2 by Deciles 5. Enter Mean response by deciles into SM

Logistic Regression Validation 1 1. Score Validation file from the XML saved earlier 2. Create Deciles from the predicted values using Visual Binning. 3. Paste your Visual Binning log syntax into SM 4. Compare Means  Means  Analyse Predicted values by Deciles 5. Enter Mean of predicted values by deciles into SM

Propensity to buy and Logistic Regression You are responsible to do the appropriate marketing metrics.