5. Leggere, an internet book retailer, is interested in better understanding the purchase decisions of its customers. For a set of 2,000 customer transactions, it has categorized the individual book purchases comprising those transactions into one or more of the following categories: Novels, Willa Bean series, Cooking Books, Bob Villa Do-It-Yourself, Youth Fantasy, Art Books, Biography, Cooking Books by Mossimo Bottura, Harry Potter series, Florence Art Books, and Titian Art Books. Leggere has conducted association rules analysis on this data set and would like to analyze the output. Based on a minimum support of 200 transactions and a minimum confidence of 50%, the table below shows the top 10 rules with respect to lift ratio.AntecedentConsequentSupport for A and CConfidenceLift RatioBotturaCookingCooking0.2271.001.16Cooking, BobVillaArt0.2050.541.12Cooking, ArtBiography0.2040.611.10Cooking, BiographyArt0.2040.531.10Youth FantasyNovels, Cooking0.2450.551.075Cooking, ArtBobVilla0.2050.611.055Cooking, BobVillaBiography0.2180.581.04BiographyNovels, Cooking0.2930.531.035Novels, CookingBiography0.2930.571.035ArtNovels, Cooking0.2490.521.01Answer the questions in the pictures: (d) What will be the effect on the rules generated if Leggere decreases the minimum support and reruns the association rules analysis?Decreasing the minimum support will generate a larger✓pool of rules and therefore will likely result in association rules with larger lift ratios. A rule with a✓lift ratio suggests that it is effective at identifying transactions in which the consequent occurs. However, the transactions involving the item set of the association rule maynot occur as frequently due to the lowered minimum support. Thus, the association rule may✓be spurious, or the item set may apply to too few transactions to be a valuablelargerbusiness opportunity.(e) What will be the effect on the rules generated if Leggere decreases the minimum confidence and reruns the association rules analysis?Decreasing the minimum confidence will generate a - Select your answer - pool of rules and therefore likely result in association rules with larger lift ratios. A rule with aSelect your answer-lift ratio suggests that it is effective at identifying transactions in which the consequent occurs. However, if this rule has a - Select your answer - confidence then thismeans that there also is a low probability that the consequent will occur given the antecedent. That is, as the confidence of an association rule - Select your answer, the relationship between theantecedent and consequent will fail more often. Depending on the profit margin associated with the transaction, this may make the association rule not a viable business opportunity.

Association rules is a method of mining that determines the frequent occurrence of patterns,…

Answered: Leggere, an internet book retailer, is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5. Leggere, an internet book retailer, is interested in better understanding the purchase decisions of its customers. For a set of 2,000 customer transactions, it has categorized the individual book purchases comprising those transactions into one or more of the following categories: Novels, Willa Bean series, Cooking Books, Bob Villa Do-It-Yourself, Youth Fantasy, Art Books, Biography, Cooking Books by Mossimo Bottura, Harry Potter series, Florence Art Books, and Titian Art Books. Leggere has conducted association rules analysis on this data set and would like to analyze the output. Based on a minimum support of 200 transactions and a minimum confidence of 50%, the table below shows the top 10 rules with respect to lift ratio.

Antecedent	Consequent	Support for A and C	Confidence	Lift Ratio
BotturaCooking	Cooking	0.227	1.00	1.16
Cooking, BobVilla	Art	0.205	0.54	1.12
Cooking, Art	Biography	0.204	0.61	1.10
Cooking, Biography	Art	0.204	0.53	1.10
Youth Fantasy	Novels, Cooking	0.245	0.55	1.075
Cooking, Art	BobVilla	0.205	0.61	1.055
Cooking, BobVilla	Biography	0.218	0.58	1.04
Biography	Novels, Cooking	0.293	0.53	1.035
Novels, Cooking	Biography	0.293	0.57	1.035
Art	Novels, Cooking	0.249	0.52	1.01

Answer the questions in the pictures:

(d) What will be the effect on the rules generated if Leggere decreases the minimum support and reruns the association rules analysis?
Decreasing the minimum support will generate a larger
✓pool of rules and therefore will likely result in association rules with larger lift ratios. A rule with a
✓lift ratio suggests that it is effective at identifying transactions in which the consequent occurs. However, the transactions involving the item set of the association rule may
not occur as frequently due to the lowered minimum support. Thus, the association rule may
✓be spurious, or the item set may apply to too few transactions to be a valuable
larger
business opportunity.
(e) What will be the effect on the rules generated if Leggere decreases the minimum confidence and reruns the association rules analysis?
Decreasing the minimum confidence will generate a - Select your answer - pool of rules and therefore likely result in association rules with larger lift ratios. A rule with a
Select your answer-lift ratio suggests that it is effective at identifying transactions in which the consequent occurs. However, if this rule has a - Select your answer - confidence then this
means that there also is a low probability that the consequent will occur given the antecedent. That is, as the confidence of an association rule - Select your answer, the relationship between the
antecedent and consequent will fail more often. Depending on the profit margin associated with the transaction, this may make the association rule not a viable business opportunity.

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