Business Understanding Course 2022

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Business Understanding
1.1 Determine Business Objectives
In data mining process, a data scientist has to establish a business objectives relating to the
process of data mining. This is usually done in order to understand what a business wants to
accomplish from the datasets that would aid in achieving the overall goal of the business. This is
usually a first step in data mining process. The dataset chosen from UCI repository
(https:///www.archives.ics.uci.edu/ml/datasets/Bank+Marketing) involves Bank Marketing
Campaign.
Problem Area: Marketing
A Portuguese Banking institution was faced with a task of establishing marketing
campaign on whether clients would subscribe to a term deposit. The Banking institution is
motivated by the desire to increase the number of clients subscribing to the bank’s term deposits.
The banking firm has not been utilizing data mining process prior to 2014 (Moro & Laureano,
2011). The bank’s management expects a written report of the analysis that would aid in decision
making process. The users expect an analysis of the contacted clients, expecting a 70%
subscription to the bank’s term deposit product.
Business Objectives
The bank’s primary objective was to ensure that a good number of its clients would subscribe to
the bank’s term deposits (Elsalamony, 2014). Term deposits are often fixed-term investments
made by clients in a financial institution, usually designed for short-term maturities. Clients
would have to wait for a period to end before withdrawing the money invested. The bank intends
to establish the reasons behind clients’ failure to subscribe to their term deposit (Laureano, et al.,
2012). The dataset analysis would be useful in establishing the type of clients (age, occupation,
financial state etc.). The bank expects a 70% increase in term deposit subscription over the next
financial period, an assessment carried out by the Bank’s credit controller.
1.2 Assessment of the situation
Inventory of Resources
In order to successfully accomplish this task, the Bank has to have a data analyst equipped with
data mining skills. The personnel is expected to provide an analysis of the situation based on the
data collected from the phone calls made to the clients. The ban requires making phone calls to
clients and recording a number of attributes including age, occupation, marital status, education,
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