Research an example of where a real business or organization has used generalized linear modeling
Research an example of where a real business or organization has used generalized linear modeling to predict a specific outcome. This may be on any topic or in any field or discipline that is interesting to you. In your initial response, provide for the class a summary of each of the five steps of risk management planning, as they relate to your chosen example. Ensure that you clearly delineate sections for Identification, Understanding, Data Preparation, Data Modeling and Application. Your summaries for how the organization in the example you have chosen must be substantive and meaningful.
Describe how the organization identified the risk(s) they have addressed through GLM;
Discuss what the organization did to understand the risk(s);
Outline, to the extent possible, how the organization gathered and prepared their data;
Explain how the organization used GLM to build a model on their data; and then;
Review how the organization applied their model to respond to the risk(s)
Sample Solution
Example: Using Generalized Linear Modeling to Predict Customer Churn
Risk Identification:
Customer churn is the loss of customers over time. It is a major risk for businesses, as it can lead to lost revenue and profits.
Risk Understanding:
There are many factors that can contribute to customer churn, including:
- Product dissatisfaction
- Price dissatisfaction
- Poor customer service
- Competition
- Changes in customer needs or preferences
- Customer demographics (e.g., age, gender, income, location)
- Customer usage data (e.g., frequency of use, products or services used)
- Customer support interactions (e.g., number of support tickets opened, customer satisfaction surveys)
- Customer churn data (e.g., whether or not the customer has churned)
- Customer demographics
- Customer usage data
- Customer support interactions
- Past churn behavior