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Project Background

This project is part of the Udacity Data Scientist Nanodegree program and uses a synthetic dataset from Starbucks. The dataset consists of about 120,000 data points split in a 2:1 ratio among training and test files.

As per project background information:

In the experiment simulated by the data, an advertising promotion was tested to see if it would bring more customers to purchase a specific product priced at $10. Since it costs the company 0.15 to send out each promotion, it would be best to limit that promotion only to those that are most receptive to the promotion. Each data point includes one column indicating whether or not an individual was sent a promotion for the product, and one column indicating whether or not that individual eventually purchased that product. Each individual also has seven additional features associated with them, which are provided abstractly as V1-V7.

Objective

The project prompt was to maximize Incremental Response Rate and Net Incremental Revenue. The optimization strategy is then evaluated against test data and a benchmark model.

My Approach

I used the training data to build a model to classify users as either "Yes" or "No" to whether they should receive the promotion. Due to imbalanced classes, I upsampled the minority class. After trying out different algorithms (not captured in analysis displayed), I chose the Gradient Boosting Classifier due to performance that did 2x as well as the benchmark model in terms of Net Incremental Revenue.

Important Files

File Description
Starbucks_PromotionStrategy_Classifier.ipynb Notebook containing analysis and evaluation
training.csv training data
Test.csv test data that is utilized by the test_results module
test_results.py module used to evaluate optimization strategy against benchmark
yellowbrick_visualizer.ipynb notebook that uses yellowbrick's Classification Visualizers

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Build binary classification model as part of optimization strategy to improve promotion's performance

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