1. SPSS Tree Chaid Demo

2. 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)

3. 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

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

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

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

7. SPSS Tree

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

9. Missing values and Profits

11. Gains

12. Classification Matrix

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