Blog Archives

Mutually Exclusive Clusters Are Boxes within Which Consumers No Longer Fit

November 8, 2015
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Mutually Exclusive Clusters Are Boxes within Which Consumers No Longer Fit

Sometimes we force our categories to be mutually exclusive and exhaustive even as the boundaries are blurring rapidly.Of course, I am speaking of cluster analysis and whether it makes sense to force everyone into one and only one of a set of discrete b...

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Clustering Customer Satisfaction Ratings

November 1, 2015
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Clustering Customer Satisfaction Ratings

We run our cluster analysis with great expectations, hoping to uncover diverse segments with contrasting likes and dislikes of the brands they use. Instead, too often, our K-means analysis returns the above graph of parallel lines indicating that the p...

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Graphical Modeling Mimics Selective Attention: Customer Satisfaction Ratings

October 28, 2015
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Graphical Modeling Mimics Selective Attention: Customer Satisfaction Ratings

As shown by the eye tracking lines and circles, there is more on the above screenshot than we can process simultaneously. Visual perception takes time, and we must track where the eye focuses by recording sequence and duration. The "50% off" ...

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The Network Underlying Consumer Perceptions of the European Car Market

October 13, 2015
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The Network Underlying Consumer Perceptions of the European Car Market

The nodes have been assigned a color by the author so that the underlying distinctions are more pronounced. Cars that are perceived as Economical (in aquamarine) are not seen as Sporty or Powerful (in cyan). The red edges connecting these attributes in...

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The Graphical Network Associated with Customer Churn

October 8, 2015
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The Graphical Network Associated with Customer Churn

The node representing "Will Not Stay" draws our focus toward the left side of the following undirected graph. Customers of a health care insurance provider were asked about their intentions to renew at the next sign-up period. We focus on those indicat...

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Undirected Graphs When the Causality Is Mutual

October 5, 2015
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Undirected Graphs When the Causality Is Mutual

Structural equation models impose causal order on a set of observations. We start with a measurement model: a list of theoretical constructs and a table assigning what is observed (manifest) to what is hidden (latent). Although it is possible to think ...

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Matrix Factorization Comes in Many Flavors: Components, Clusters, Building Blocks and Ideals

August 6, 2015
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Matrix Factorization Comes in Many Flavors: Components, Clusters, Building Blocks and Ideals

Unsupervised learning is covered in Chapter 14 of The Elements of Statistical Learning. Here we learn about several data reduction techniques including principal component analysis (PCA), K-means clustering, nonnegative matrix factorization (NMF) ...

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Sensemaking in R: A Plenitude of Models Makes for Good Storytelling

August 3, 2015
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Sensemaking in R: A Plenitude of Models Makes for Good Storytelling

"Sensemaking is a motivated, continuous effort to understand connections (which can be among people, places, and events) in order to anticipate their trajectories and act effectively."- Gary Klein, Brian Moon & Robert HoffmanMaking Sense of Sensema...

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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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