Page 3 2. An insurance company wants to leverage its vast warehouse of customer data to perform market segmentation in o

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Page 3 2 An Insurance Company Wants To Leverage Its Vast Warehouse Of Customer Data To Perform Market Segmentation In O 1 (206.43 KiB) Viewed 40 times

Page 3 2. An insurance company wants to leverage its vast warehouse of customer data to perform market segmentation in order to know what the market they operate in looks like. This is a necessary task before the bank can consider objectives such as extending their product portfolio, the acquisition of new customers and carrying out targeted mailing campaigns. The company hires you as a consultant to design a knowledge discovery and data mining project to perform segmentation of their customer profiles. (a) Give a general overview of the knowledge discovery process that you intend to apply. List the different stages and provide a brief description of each stage with respect to the given scenario. (10 marks) (b) Is a descriptive or a predictive data mining approach more appropriate for this task? Identify and justify a specific data mining algorithm that could be applied and discuss its advantages and disadvantages over alternative algorithms. (5 marks) (c) Give the steps to do for the specific data mining algorithm that you selected in Q2 (b). (5 marks)