Homework 2 (Deadline: Feb 16, 2022)
1. The Institute for Statistics Education at Statistics.com offers online courses in statistics and business analytics, and is seeking information that will help in packaging and sequencing courses. Consider the data in the file CourseTopics.csv. These data are for purchases of online statistics courses at Statistics.com. Each row represents the courses attended by a single customer. The firm wishes to assess alternative sequencings and bundling of courses. Use association rules to analyze these data (with support = 0.01, and confidence = 0.5), and interpret the first two of the resulting rules (ranked by the lift ratio).
2. The file UniversalBankFull.csv contains data on 5000 customers of Universal Bank. The data include customer demographic information (age, income, etc.), the customer’s relationship with the bank (mortgage, securities account, etc.), and the customer response to the last personal loan campaign (Personal.Loan). Among these 5000 customers, only 480 (=9.6%) accepted the personal loan that was offered to them in the earlier campaign. In this question, we focus on two predictors: Online (whether or not the customer is an active user of online banking services) and Credit Card (CreditCard, does the customer hold a credit card issued by the bank), and the outcome Personal.Loan. Partition the data into training (60%) and validation (40%) sets. Consider the task of classifying a customer who owns a bank credit card and is actively using online banking services. Using the naïve Bayes classifier. Find
P(Personal.Loan = 1|CreditCard=1, Online=1) and P(CreditCard=0|Personal.Loan=1)?
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3. Draw 40000 random variables following the standard normal distribution. Plot the histogram.
4. A human resource manager at a university in the US has been considering a change to the structure of employee benefits (in terms of healthcare coverage and pension savings). To get an idea of how receptive the faculty, administrators, and staff members might be to the proposed changes, she has decided to conduct a survey in which n = 188 respondents could register their support or opposition. Use R and the data set benefits.csv to answer the following questions:
a. Find the 95% confidence interval estimate of p.
b. What sample size would you recommend to achieve a margin of error of 0.02, with confidence 0.99?
(use p ̇ = 1/2)
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