Blog Archives

But I Don’t Want to Be a Statistician!

July 29, 2015
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But I Don’t Want to Be a Statistician!

"For a long time I have thought I was a statistician.... But as I have watched mathematical statistics evolve, I have had cause to wonder and to doubt.... All in all, I have come to feel that my central interest is in data analysis...."Opening paragrap...

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Statistical Models of Judgment and Choice: Deciding What Matters Guided by Attention and Intention

July 27, 2015
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Statistical Models of Judgment and Choice: Deciding What Matters Guided by Attention and Intention

Preference begins with attention, a form of intention-guided perception. You enter the store thirsty on a hot summer day, and all you can see is the beverage cooler at the far end of the aisle with your focus drawn toward the cold beverages that you im...

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"Models, Models Everywhere!" Brought to You by R

July 21, 2015
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"Models, Models Everywhere!" Brought to You by R

Statistical software packages sell solutions. If you go to the home page for SAS, they will tell you upfront that they sell products and solutions. They link both together under the first tab just below "The Power to Know" mantra. SPSS separates produc...

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Seeing Data as the Product of Underlying Structural Forms

July 15, 2015
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Seeing Data as the Product of Underlying Structural Forms

Matrix factorization follows from the realization that nothing forces us to accept the data as given. We start with objects placed in rows and record observations on those objects arrayed along the top in columns. Neither the objects nor the measuremen...

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The Ecology of Local Subspaces: Mixtures of Parochial Views

July 9, 2015
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The Ecology of Local Subspaces: Mixtures of Parochial Views

No matter where you live, your view of the world is biased and limited, which is the beauty of this magazine cover.As a marketer, of course, all my maps depict, not place, but consumption. For example, in an earlier post I asked, "What apps are on your...

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Regression with Multicollinearity Yields Multiple Sets of Equally Good Coefficients

July 6, 2015
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Regression with Multicollinearity Yields Multiple Sets of Equally Good Coefficients

The multiple regression equation represents the linear combination of the predictors with the smallest mean-squared error. That linear combination is a factorization of the predictors with the factors equal to the regression weights. You may see the wo...

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The Nature of Heterogeneity in Coevolving Networks of Customers and Products

July 3, 2015
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The Nature of Heterogeneity in Coevolving Networks of Customers and Products

The genre shirt asks, "What kind of music do u listen 2?"Microgenres exist because markets are fragmenting and marketers need names to attract emerging customer segments with increasingly specific preferences. The cost of producing and delivery music n...

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Generalizing from Marketing Research: The Right Question and the Correct Analysis

June 28, 2015
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Generalizing from Marketing Research: The Right Question and the Correct Analysis

The marketing researcher asks some version of the following question in every study, "Tell me what you want?" The rest is a summary of the notes taken during the ensuing conversation.Steve Jobs' quote suggests that we might do better getting a reaction...

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Looking for Preference in All the Wrong Places: Neuroscience Suggests Choice Model Misspecification

June 22, 2015
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Looking for Preference in All the Wrong Places: Neuroscience Suggests Choice Model Misspecification

At its core, choice modeling is a utility estimating machine. Everything has a value reflected in the price that we are willing to pay in order to obtain it. Here are a collection of Smart Watches from a search of Google Shopping. You are free to click...

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Statistical Models with a Point of View: First vs. Third Person

June 2, 2015
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Statistical Models with a Point of View: First vs. Third Person

Marketing data can be collected in the first or third person, and we require different statistical models for each point of view.Netflix encourages you to adopt a third-person perspective when it surveys your taste preferences by asking how often you w...

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