Browsing All posts tagged under »Problem Definition«

The Likelihood of Being TRUE? (Scientist, Consultant, or Truth Seeker)

September 4, 2013

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Clients want to know “What is true?”, while statistical tests offer the likelihood that a relationship in the data could have been “caused by random error.”  The fact that the question and answer don’t line up is usually responded to by quoting textbook doctrine about what statistics can demonstrate and is then followed by adopting […]

Tips for Using Cluster Analysis to Segment Markets (CASS)

November 17, 2010

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THE GOAL: When segmenting markets the objective is to find distinct groups of consumers who are similar to each other on multiple variables of “interest”.  If that lofty goal is realized, then products and marketing programs can be designed to appeal to desirable consumer groups so that when CONSUMERS select between you and your competitors, […]

The Most Important and Least Thought about Variable: The Dependent

November 17, 2010

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All the hard work we put into the “model” on the right hand side of the equation, is only as accurate as the dependent variable was to start with in reflecting the business problem at hand.  Yet…. modeling efforts typically focus almost exclusively on the prediction of the objective variable, while often accepting the dependent […]