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<HTML>  <HEAD>    <!--SCRIPT LANGUAGE="JavaScript" SRC="http://a1835.g.akamai.net/f/1835/276/3h/www.netlibrary.com/include/js/dictionary_library.js"></SCRIPT>    <SCRIPT LANGUAGE="JavaScript">      if (!opener){document.onkeyup=parent.turnBookPage;}    </SCRIPT!-->    <META HTTP-EQUIV="Cache-Control" CONTENT="no-cache">    <META HTTP-EQUIV="Pragma" CONTENT="no-cache">    <META HTTP-EQUIV="Expires" CONTENT="-1"><META http-equiv="Content-Type" content="text/html; charset=windows-1252"><SCRIPT>var PrevPage="Page_29";var NextPage="Page_31";var CurPage="Page_30";var PageOrder="42";</SCRIPT>  <TITLE>Document</TITLE>  </HEAD>  <BODY BGCOLOR="#FFFFFF"><CENTER><TABLE BORDER=0 WIDTH=100% CELLPADDING=0><TR><TD ALIGN=CENTER>  <TABLE BORDER=0 CELLPADDING=2 CELLSPACING=0 WIDTH=100%>  <TR>  <TD ALIGN=LEFT><A HREF='Page_29.html'>Previous</A></TD>  <TD ALIGN=RIGHT><A HREF='Page_31.html'>Next</A></TD>  </TR>  </TABLE></TD></TR><TR><TD ALIGN=LEFT><P><A NAME='JUMPDEST_Page_30'/><A NAME='{137}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH='100%'><TR><TD ALIGN=RIGHT><FONT FACE='Times New Roman, Times, Serif' SIZE=2 COLOR=#FF0000>Page 30</FONT></TD></TR></TABLE><A NAME='{138}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH='100%'><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD ALIGN=CENTER><FONT FACE='Times New Roman, Times, Serif' SIZE=3><IMG SRC='0030-01.JPG' BORDER=0 ALT='0030-01.jpg' WIDTH=443 HEIGHT=224></FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{139}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH='100%'><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD ALIGN=CENTER><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Figure&nbsp;1-21<BR>&nbsp;Segmentation&nbsp;analysis&nbsp;decision&nbsp;tree,&nbsp;in&nbsp;which&nbsp;avg&nbsp;=&nbsp;average&nbsp;<BR>sales,&nbsp;std&nbsp;=&nbsp;standard&nbsp;deviation,&nbsp;and&nbsp;n&nbsp;=&nbsp;number&nbsp;of&nbsp;observations.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{13A}'/><TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH='100%'><TR><TD HEIGHT=12></TD></TR><TR><TD><TABLE CELLSPACING=0 WIDTH=535 CELLPADDING=5><TR><TD WIDTH=103 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>IF</FONT></TD><TD WIDTH=432 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2> Middle America Consumer Type ZIP code is greater than 0 but less than 6%</FONT></TD></TR><TR><TD WIDTH=103 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>AND</FONT></TD><TD WIDTH=432 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2> visitor comes from Rhode Island, New Hampshire, or Vermont</FONT></TD></TR><TR><TD WIDTH=103 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>THEN</FONT></TD><TD WIDTH=432 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>projected online sales is $244.77, with a standard deviation of $83.19</FONT></TD></TR><TR><TD COLSPAN=2 WIDTH=535 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2><I>NOTE:</I> The average total customer sales for this site is $206.85.</FONT></TD></TR></TABLE></TD></TR></TABLE><BR><A NAME='{13B}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3><B><I>Model the Data</I></B></FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{13C}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>One of the most important types of analysis a bookseller is likely to make is one involving the modeling of its website visitors' behavior. This type of analysis is known as <I>classification</I> or <I>prediction</I> and involves the discovery and learning of visitors' features and their online behavior. Like segmentation, classification involves examining visitors' features and their propensity to click through an ad or banner or make an online purchase. Modeling and predicting website visitor behavior can be accomplished using data mining tools incorporating neural networks. (See Figure 1-22.) A neural network is software designed to train itself on the patterns in large sets of samples, which in this case involve the online activity of its website visitors.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{13D}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>Modeling involves uncovering subtle customer and transactional nuances that can be coded in the form of &quot;weights&quot; in a formula for scoring the behavior of future new visitors. (See Figure 1-23.) On the basis of these scores, the bookseller can mount multiple targeted</FONT><FONT FACE='Times New Roman, Times, Serif' SIZE=3 COLOR=#FFFF00><!-- continue --></FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{13E}'/></FORM></P></TD></TR></TABLE><P><FONT SIZE=0 COLOR=WHITE></CENTER><A NAME="bottom">&nbsp;</A><!-- netLibrary.com Copyright Notice -->  </BODY></HTML>

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