Data-Mining Homework 2 Solved

Telco Customer Churn Recommendation: DM – F2.H2 Background and Purpose:

By responding to this RFP, the proposer agrees that s/he has read and understood all documents within this RFP package.

Objective

Telco is interested in contracting your services to build a decision tree model to predict churn at their company. They would like to compare the predictability of your decision tree model to their in-house models. In order to keep consistency with their practices, you will need to use an 80- 20 split (training and test) when creating your tree model. Be sure to provide information on the decision tree you would recommend including the splitting information with a nice visual of the tree. They are also interested in knowing the misclassification rate for the test data.

Data provided

The TelcoChurn.csv dataset has 21 columns:

•   CustomerID
•   Gender
•   SeniorCitizen – 1 senior citizen, 0 not
•   Partner – whether the customer has a partner or not (yes, no)
•   Dependents – whether the customer has dependents or not (yes, no)
•   Tenure – number of months the customer has stayed with the company
•   PhoneService – whether or not the customer has phone service (yes, no)
•   MultipleLines – Whether the customer has multiple lines or not (yes, no, no phoneservice)
•   InternetService – customer’s internet service provider (DSL, Fiber optic, no)

•   OnlineSecurity – whether the customer has online security or not (yes, no no internet service)
•   OnlineBackup – whether or not the customer has online backup or not (yes, no no internet service)
•   DeviceProtection – whether the customer has device protection or not (yes, no, no internet service)
•   TechSupport – Whether the customer has tech support (yes, no, no internet)
•   StreamingTV – whether the customer has streaming TV or not (yes, no, no internetservice)
•   StreamingMovies – Whether the customer has streaming movies or not (yes, no, nointernet service)
•   Contract – the contract term of the customer (month-to-month, one year, two years)
•   PaperlessBilling – whether customer has paperless billing or not (yes, no)
•   PaymentMethod – the customer’s payment method (electronic check, mailed check,bank transfer(automatic), credit card (automatic)
•   MonthlyCharges – the amount charged to customer monthly
•   TotalCharges – the total amount charged to the customer
•   Churn – whether the customer churned or not (yes, no)