Explain the confusion matrix in classification methods and explain how you interpret the i
Explain the confusion matrix in classification methods and explain how you interpret the itsnumber in an example such as which containers need to be selected at ports for a full inspection(for custom check)? (3 marks).2- Give two practical examples on applications of classification methods in your discipline. Providedetail explanations. You need to explain why you think classification can be used in those cases,you do not need to provide data or solve them. (2 marks).3- Give two examples related to your discipline that you need to apply over sampling partitioningbefore building the model. You need to provide detail explanations (5 marks).4- Assume one of the explanatory variable (named X1) in your logistic regression is a categoricalvariable with the following levels: low, average and high, and another explanatory variable(named X2) is also categorical with the following levels: Sydney and Melbourne. Explain howyou will use them in developing your logistic regression model. How many coefficients you willhave in your final model? (6 marks).(5+3+2+6 = 16 marks)SECTION B: QUANTITATIVE QUESTIONS5- 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 dataon types of product purchased (between 1-5), purchase amount ($), age, gender, family size ofthe 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 infuture will spend over $800.
(Write your answer as: Step 1-... Step 2- ... and so on. Youdon’t need to write or run any R code). (8 marks)b) Develop a predictive model to predict the spend amount of a new male customer withage of 30 who is living in a family with size 2 and is not a member and hold a discountcard type 2. (6 marks)(8+6=14 marks)6- A company provides maintenance service for washing machines in Victoria. The collected dataare presented in the Excel file (second worksheet).a) Assume the manager asked you to analyse the data and provide him some insights andrecommendations. The report should not exceed 2 pages. (8 marks)b) Build a multiple regression model to predict the repair time for a future booking servicethan needs to be done by John and it is an Electrical repair. Do you suggest this serviceto be assigned to the morning shift or afternoon shift? (6 marks)c)
What other data you recommend to the manger to be added into this dataset in future forbetter analysis and what kind of analysis you think will be useful based on them. (4marks)(8+6+2 = 16 marks)ISYS3374 Business Analytics – Third Assessment27- In worksheet 3, a dataset from blood bank is presented. The data are recorded for apheresis blooddonation made by a group of donors of a period of time. The donor ID is unique for each donor.A donor might have donated more than once in this period. At each donation, the blood totalprotein level of the donor has been recorded. Use the dataset to answer the following questions:a) There are some missing values for blood type. Think how you can fill in the missingvalues. Explain your approach (step by step) and also apply your approach and try to fillthe missing value as much as possible in. (save the results in an Excel worksheet in andname it Question 3 Part a.) (4 marks)b) Calculate the average of total protein for each blood type.
Explain your approach (stepby step). Report them in a worksheet and name it Question 3 Part b. (2 marks)c) Calculate the range of total protein for each blood type. Explain your approach (steps bystep). Report them in a worksheet and name it Question 3 Part c. (5 marks)d) Is total protein declining by age? (2 marks)e) Present two best visualisation tool for this data that you think provide useful information?(4 marks)(4+2+5+2+4= 17 marks)8- The data presented in worksheet 4 is the results of a 4-year study conducted to assess how age,weight, and gender influence the risk of diabetes. Risk is interpreted as the probability (times100) that the patient will have diabetes over the next 4-year period.a)
What predictive model you suggest to relate risk of diabetes to the person’s age, weightand the gender. Why? (you don’t need to build the model just explain). (4 marks)b) Develop an estimated multiple regression model that relates the expected remaining lifeto the person’s age, weight, gender, life style and risk of diabete. Present the regressionformula as a mathematical equation. Interpret the coefficients of the regression andcomment on the strength of the regression. (4 marks)c) What is the expected remaining life for a 59-year-old man living in a small town with 72kg weight and risk of 25% of diabete? (4 marks) (8+4+4= 16 marks)9- Matthew has a new job as business analyst. He plans to invest 10 percent of his annual salaryafter the tax into a retirement account at the end of every year for the next 30 years. Suppose thatannual return of the investment is 6%, and his current salary before tax is 90k which grow 3%per year. The tax will apply as 15% on the salary up to 50k and it is 20% for the salary intervalof 50k and 80k and the tax rate will be 25% for the remaining salary more than 80k (for exampleif his salary will be 105k, he is paying 15% tax on his first 50k and 20% in the next 30 k and25% on his next 25k of his salary). then:a) Create a spreadsheet which shows Matthew the balance of retirement account for variouslevels of annual investments and returns. (3 marks)b) If Matthew aims to gain $1,000,000 at the end of the 30th year, what percentage of hissalary he should put in the investment annually. (3 marks) (3+3 = 6 marks)10- Suppose that the minimum number of security staff required at different hours are at the ith hour(i=1,2,...,24) are outlined as follows:Hour beginning at12am123456789101112Number of staffrequired5444466688885Hour beginning at131415161718192021222324Number of staffrequired5558889101010108ISYS3374 Business Analytics – Third Assessment3Each staff must work in 6 consecutive hours. The salary per hour is $35. Determine how many staffshould start working at the beginning of ith hour to minimize the total cost:a) Formulate the problem as a linear programming model. Write down the model and explain it.b) Solve the model in Excel and present the results and interpret them.c) If it is possible to ask a staff to stay extra 2 hours with salary of $45 per hour. Formulate theproblem, write the mathematical model and explain it.d) Solve the model written in part c and explain the solution