This project aimed to develop models that effectively predict customer acceptance of credit card marketing offers.
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Data Import and Shape Verification: Imported spreadsheet data for analysis. Checked the dimensions to get an initial feel for the size of the dataset.
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Identifying the Target Variable: Based on the requirements, determined 'offer_accepted' as the target that the model must predict.
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Formatting and Exploratory Analysis: Renamed columns with suitable formatting. Then, analyzed data types and identified null values in features.
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Converting to Categorical Features: Variables like the number of bank accounts, credit cards, household size, etc., were identified as potential categorical features.
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Removing Unnecessary Features: Dropped non-essential features (e.g., customer number).
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Handling Missing Values: Employed a random sample imputer strategy to replace missing values.
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Outlier Treatment: Created a function to identify and adjust outliers, focusing on continuous numerical features.
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Correlation Analysis: Examined how variables relate to each other using a correlation heatmap. Removed a feature to address high colinearity.
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Chi-Squared Test: Employed this test to assess relationships between categorical features and the target.
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Categorical features underwent transformation by one-hot encoding
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Applied standard scaling to continuous numerical features.
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Data Splitting: Divided the data into training and testing sets to allow for model development and evaluation.
Baseline Model: Started with a Logistic Regression model to establish an initial reference for performance.
Model Comparison: Trained and evaluated additional models with Decision Trees and K-Nearest Neighbors algorithms.
KNN Optimization: Investigated model performance variations based on a range of 'K' values (neighbors) in KNN to fine-tune performance.