Market Basket Analysis, DESCR, Predict, & Prescrip
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Market Basket Analysis, DESCR, Predict, & Prescrip

Market Basket Analysis, DESCR, Predict, & Prescrip

Description:

Published: January 7, 2017 0 0 471
By: Shawn Barnes, Cal State San Marcos
Category: Business
Hashtags: #Access #Analysis #analysisdata #Business #business_intelligence #Data_Science #dataanalysis #dataanalytics #Datababse #Excel #marketbasedreform #statisticalanalysis #Statistics

Market Basket Analysis:


A market-basket analysis is an unsupervised data mining technique for determining sales patterns. A market-basket shows the products that customers tend to buy together. In marketing transactions, the fact that customers who buy product X also buy product Y creates a cross-selling opportunity; that is, “If they are buying X, sell them Y” or “If they are buying Y, sell them X.”


Then we want to calculate the likelihood (conditional probability) that a customer would also like to purchase product A, say mask, if s/he has already put product B, say fins, in the shopping cart. In market-basket terminology, such a conditional probability estimate is called the confidence. High confidence indicates a good opportunity for cross-selling.


In market-basket terminology, support is the probability that two items will be purchased together. To estimate that probability, we examine sales transactions and count the number of times that two items occurred in the same transaction (support count).


I designed several SQL queries in access to derive the market basket information.


Also answered the following questions:
i) What information is provided by the descriptive analytics employed at Magpie Sensing?
ii) What type of support is provided by the predictive analytics employed at Magpie Sensing?
iii) How does prescriptive analytics help in business decision making?
iv) In what ways can actionable information be reported in real time to concerned users of the system?
v) In what other situations might real-time monitoring applications be needed?