Tutorial 2: Using SI-CHAID to Identify Profitable Segments


The tutorial shows how to use the CHAID ordinal algorithm to segment based on profitability scores. We will again use the magazine subscription data set, subscribe.sav, used previously in Tutorial 1. However, our dependent variable will now be RESP3, coded 1 (paid responder), 2 (unpaid responder) and 3 (nonresponder). We’ll compare a default nominal CHAID segmentation of RESP3 to the ordinal CHAID analysis that takes into account the gain (or loss) associated with each response group. For simplicity, we utilize the SI-CHAID option settings used in Magidson (1993).

The Origin: http://www.statisticalinnovations.com/products/chaidtutorial2.pdf

Full Text: chaidtutorial2

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