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Make Your Data Mean More With Derived Variables


The chapter begins with modeling customer attrition in the cell phone industry, moves to a review of several classic variable combinations, and offers guidelines for the creation of derived variables.



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Derived Variables: Making the Data Mean More



Download this chapter from Data Mining Techniques, Third Edition, by Gordon Linoff and Michael Berry, and learn how to create derived variables, which allow the statistical modeling process to incorporate human insights. As much art as science, selecting variables for modeling is "one of the most creative parts of the data mining process," according to the authors.

The chapter begins with a story about modeling customer attrition in the cell phone industry, moves to a review of several classic variable combinations, and then offers guidelines for the creation of derived variables.

Download now.