SPSS Tree Chaid Demo

Variable and Values 1. Analyse value categories and redefine variables as appropriate (Scale, Ordinal, Nominal) 2. Frequency on dependent variable to determine (n and % of responses) 3. Calculate BE point (FC/GM)

Oversample If responses unbalance, create a weight variable R1/R2 = Multiplier Recode response into a new weight variable such as R1 = 1 and R2 = Multiplier. Run Tree using weight variable as an influence variable

DMDATA IDNominalNot Used RespondedNominalUsed PreviousNominalNot Used ControlPackageNominalNot Used PostalCodeNominalNot Used AgeScaleUsed IncomeOrdinalUsed EducationNominalUsed ResideScaleUsed GenderNominalUsed MarriedNominalUsed ChildrenOrdinalUsed RegionNominalUsed SequenceNominalNot Used

Responses Create weight: 1820/97 = 19 Recode into a different variable: Responded  Weight Old (0)  New (1) Old (1)  New (19)

Economics Fixed cost = $0.80 Gross Revenue = $20.00 BE .8/20 =.04

SPSS Tree

Output and Criteria Manage Nodes to end up with a maximum of 10 nodes

Missing values and Profits

Gains

Classification Matrix

Lab Exercise File: Subscribe.sav Cost: $2.40 Gross income: $30 Dependant variables: response2