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

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

3. 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.

4. 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

5. 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

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

7. 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

8. 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

9. 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

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