ITM 618 – Business Analytics and Intelligence

School of Information Technology Management

Course: ITM 618 – Business Analytics and Intelligence – Second Midterm

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1. [2 points] In the following text, list all 1-grams, 2-grams, and 3-grams.

fast orange dog runs

1. [5 points] (Clustering)
   1. Explain the definition of a centroid in k-means.
   2. The following is a set of one-dimensional points: 1; 1; 2; 3; 5; 8; 13; 21; 33; 54. Perform two iterations of k-means on these points using the two initial center points 0 and 11.

1. [5 points] Assume the following model predicts whether a customer churns or not:

Given the following 6 instances as a test set, first, build the confusion matrix based on what the model predicts for the instances and what the actual target values are. Second, find the following values using the confusion matrix that you build in the first step:

• Accuracy?
• True Positive?
• False Positive?
• Recall?
• Precision?

1. [3 points] A company wants to apply k-NN to find out whether new customers response to its marketing campaign or not. We have data of six existing customers and their response. In the table below, we list their response and their distances to two new customers (Jack and Colleen).

What will be the predicted responses of Jack and Colleen using k-NN when k is set to the following values? Justify your answer.

1. k = 1
2. k = 3
3. k = 5

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