ECON-575-Data Analytics-Problem Set 2 – Peter Dorner
Problem 1
I was working in an insurance firm as an intern where every member of staff worked in
an open office allowing one to see the operations and events that happened to the office. The
secretary was requested to provide a list of all clients who had arrears of more than $200. Also,
the region manager of the organization needed the list of clients to be classified on basis of
gender and location of the client. The secretary instructed the IT intern to provide the list in an
hours’ time. The IT intern searched for the clients on the company’s data files but could not
locate the list within the required time. The secretary was angry at the IT intern and blamed the
intern for incompetency. The intern was summoned by the manager, but he explained what the
problem was. The intern could not locate the list as clients’ data had been uploaded in the system
without following any format.
This is an appropriate example of classification problem. This is because the data
available in the organization at the time had been uploaded in the system without following the
required format or procedure such as on basis of gender, geographical location of the client or
even on basis of the payments they had done. Supervised segmentation method can assist
through classifying the data based on the predetermined classifications or groups of data.
Target variable:
Arrears over $200: whether arrears are over $200
Male or female: determining the gender of the client
From New York: whether the client was within the expected location or outside the New
York location or region.
Problem 1
I was working in an insurance firm as an intern where every member of staff worked in
an open office allowing one to see the operations and events that happened to the office. The
secretary was requested to provide a list of all clients who had arrears of more than $200. Also,
the region manager of the organization needed the list of clients to be classified on basis of
gender and location of the client. The secretary instructed the IT intern to provide the list in an
hours’ time. The IT intern searched for the clients on the company’s data files but could not
locate the list within the required time. The secretary was angry at the IT intern and blamed the
intern for incompetency. The intern was summoned by the manager, but he explained what the
problem was. The intern could not locate the list as clients’ data had been uploaded in the system
without following any format.
This is an appropriate example of classification problem. This is because the data
available in the organization at the time had been uploaded in the system without following the
required format or procedure such as on basis of gender, geographical location of the client or
even on basis of the payments they had done. Supervised segmentation method can assist
through classifying the data based on the predetermined classifications or groups of data.
Target variable:
Arrears over $200: whether arrears are over $200
Male or female: determining the gender of the client
From New York: whether the client was within the expected location or outside the New
York location or region.
