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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_325";var NextPage="Page_327";var CurPage="Page_326";var PageOrder="333";</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_325.html'>Previous</A></TD>  <TD ALIGN=RIGHT><A HREF='Page_327.html'>Next</A></TD>  </TR>  </TABLE></TD></TR><TR><TD ALIGN=LEFT><P><A NAME='JUMPDEST_Page_326'/><A NAME='{AC1}'/><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 326</FONT></TD></TR></TABLE><A NAME='{AC2}'/><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>approval systems. They all use some form of neural network technology in an attempt to maximize their profits and minimize their costs. A similar situation arises with your website, in which you can model past online customer behavior in order to predict or anticipate how a new visitor is likely to behave.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{AC3}'/><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>For example, you may like to know whether a new visitor to your website is going to make a high number of purchases or spend a large amount of money. Using a neural network tool we can begin to train a model to recognize and predict the expected purchases for each website customer. To construct a predictive model you need to have a sample of customer sessions of both profitable and unprofitable customers. In this instance a neural network is being trained to recognize the features and actions of profitable customers, what they look like, where they come from, how they search, how long they stay, and more importantly, what they are likely to purchase.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{AC4}'/><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>As with a decision tree tool, a neural network looks at all the available attributes in your data in order to converge on a few important clues that communicate how visitors are likely to behave and respond to your marketing efforts and/or products or services. For classification we use a data mining tool incorporating a neural network to construct a model, which begins with a zero accuracy rate, in an attempt to predict the expected amount of purchases visitors are likely to make at a website (Figure 9-22).</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{AC5}'/><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>At first a neural network cannot distinguish between customers who made purchases and those who did not and thus it cannot predict Total Sales. However, it gradually learns to distinguish between the examples as it recycles positive and negative samples of shoppers. Soon it begins to learn the attributes and behavior of each, and improves its accuracy in predicting Total Sales in just a few minutes of training time (Figure 9-23).</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{AC6}'/><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>Eventually this neural network tool achieves an accuracy rate of 80 percent in predicting the total number of purchases a visitor is likely to make at this website. This particular tool, like almost all other data mining packages, allows the user to easily &quot;split&quot; their data into training and testing sets. The training data set is used to construct the neural network model, while the testing data set is used to evaluate the accuracy of the model. Once the user is satisfied with the accuracy of the model, C code can be generated from most of these tools which can be used to &quot;score&quot; new visitors to a website so that predictions can be made about their overall propensity to make purchases and their potential profitability.</FONT><FONT FACE='Times New Roman, Times, Serif' SIZE=3 COLOR=#FFFF00><!-- break --></FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{AC7}'/></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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