Logistic regression is a statistical method used to model the relationship between a binary dependent variable and one or more independent variables. In this project, we will be using logistic regression to predict the likelihood of a customer purchasing a product based on their demographic and behavioral characteristics.
The dataset we will be using for this project contains information on 10,000 customers, including their age, gender, income, and whether or not they purchased the product. Our goal is to build a logistic regression model that can accurately predict whether a customer will purchase the product based on these variables.
To start the project, we will first explore the dataset to understand the distribution of the variables and identify any missing values. We will then preprocess the data by encoding categorical variables and splitting the dataset into training and testing sets.
Next, we will build the logistic regression model using the training data and evaluate its performance using metrics such as accuracy, precision, recall, and F1 score. We will also plot the ROC curve and calculate the area under the curve (AUC) to assess the model's predictive power.
Finally, we will interpret the coefficients of the logistic regression model to understand the impact of each variable on the likelihood of a customer purchasing the product. We will also make predictions on the testing data and compare them to the actual outcomes to assess the model's accuracy.
Overall, this project will demonstrate how logistic regression can be used to predict customer behavior and inform marketing strategies. By the end of the project, we will have a better understanding of the factors that influence customer purchasing decisions and how to leverage this information to improve business outcomes.
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Google Gemini AI
Sep 15
Project Title: Logistics Regression for Predicting Loan Default
Data Source: UCI Machine Learning Repository
Data Description:
The dataset contains information on 336 personal loan applications. Each application has 24 features, including:
- Loan Amount: Amount of the loan in CAD - Term: Duration of the loan in months - Interest Rate: Annual interest rate in % - Debt-to-Income Ratio: Ratio of monthly debt payments to monthly income - Credit Score: Applicant's credit score - Number of Late Payments: Number of late payments in the past 2 years - Home Ownership: Whether the applicant owns their home - Age: Applicant's age in years - Education: Applicant's education level - Employment Length: Length of time in current employment in years - Income: Applicant's monthly income - Gender: Gender of the applicant - Marital Status: Marital status of the applicant - Defendant: Whether the applicant defaulted on the loan (binary target variable)
Data Preparation:
- Removed duplicate data points - Converted categorical variables to dummy variables - Scaled numerical features to have a mean of 0 and a standard deviation of 1 - Split the data into training (70%) and testing sets (30%)
Model Development:
- Used a logistic regression model to predict loan default - Optimized model parameters using cross-validation - Evaluated model performance using accuracy, precision, recall, and F1-score
The most important features for predicting loan default were:
1. Debt-to-Income Ratio 2. Credit Score 3. Number of Late Payments 4. Income 5. Employment Length
Conclusion:
The logistic regression model effectively predicted loan default using the provided features. The model can be used to identify high-risk loan applicants and make informed lending decisions.
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Kelly Smith
Sep 17
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