MBAS903 Assessment 1 – INDIVIDUAL Assessment Purpose: Prepare a report for your client Paralyzed Veterans of America (PVA) to allow them to gain insights into the demographic characteristics their customers and possible links to donation value. Business Analytics Applications: descriptive analytics, cluster analysis Background: Paralyzed Veterans of America (PVA) is a not-for-profit organisation that provides programs and services for US veterans with spinal cord injuries or disease. With an in-house database of over 13 million donors, PVA is also one of the largest direct mail fund raisers in the country. The BIGPVA dataset in SAS contains data on customers’ demographic information, past donation behaviour and response to a current promotion event. Guidelines: Use only demographic data for the cluster analysis (gender, home owner, age, median home value region, median income region, percent veterans region). Then start with variable selection and think about the rationale for your chosen variables. You will need to conduct descriptive analytics of your variables (central tendency, variation, shape, correlations etc and identification of missing data). Develop a range of cluster analyses and experiment with differing numbers of clusters and variables. As a final step, analyse the relationship between your clusters and “Target Gift Amount With Zero”. DO NOT include target gift amount in the cluster analysis itself (refer to lecture recordings on Moodle how to do this step). There is no one “right’ answer, so think about and discuss in your report the rationale for the steps you take in the analysis and the reasoning for your preferred cluster model(s). Format: Business report for client Executive summary – one paragraph overview of full project including summary of results – 10 marks Introduction – set the scene and background of client issue/problem (broad to specific issues) – 10 marks Methodology – discuss the rationale and planned steps for your analytics process (ie. details of descriptive analytics and cluster analysis you plan to do – DO NOT include any results in this section) – 20 marks Body and analysis – descriptive analytics results, one paragraph summary of the process and steps ultimately taken in your cluster analysis present to arrive at your chosen models (1 or 2 models), then focus on discussion and interpret of the chosen model(s), examine possible link with target gift amount, and any recommendations for the client (Model = combination of k and set of variables). Do not waste space presenting results of models that are not your chosen 1 or 2 models – 50 marks Conclusions – wrap up the exercise with recommendations for client – 10 marks Variable nameDescriptionValues / UnitsGenderGender of customerMale, Female, UnknownHome OwnerWhether customer is a home ownerHome owner, UnknownAgeTarget customer ageMeasured in yearsMedian Home Value RegionMedian home value in the customer’s region$Median Income RegionMedian income in customer’s region$Percent Veterans RegionPercent of returned war veterans in customer’s region%Target Gift Amount with ZeroDollar value of donation, includes those that did not make a purchase$
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