Plumbing Inc. has been selling plumbing supplies for the last 20 years. The owne
ID: 3204805 • Letter: P
Question
Plumbing Inc. has been selling plumbing supplies for the last 20 years. The owner, Joe, decides that next year it is time to diversify by adding gardening tools to the products. Having had success using customer data to build predictive models to guide direct mail campaigns for special plumbing offers, he considers that data mining could help him to identify a subset of customers who should be good prospects for his new set of products. Is Joe ready to solve this as a supervised learning problem? If yes – what would you suggest as the target variable?
Explanation / Answer
Basically when he uses customer data and with the use of unsupervised learning and data mining techniques he is done with classfying and grouping of the customers with similar habits of buying his product ,now he has different number of groups of customer with similer interests towards his products,so he could decide the target group to whom he wants to provide with special offer.
yes now he solve this as supervised learning problem by identifying the nature of each groups ,he can use any regression model on them.
Target variable now would be the groups that he makes using his predictive model.