Bayesian Binary Regression

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This project is an attempt to assess the application of Bayesian methods to the marketing field.

Introduction:

In this project we attempt to assess the application of Bayesian methods to the marketing field. In the magazine industry making a customer renew his/her subscription is critical as it has a crucial financial impact. The response variable is binomial as he may either renew the subscription or decline. The predictor variables may be continuous or categorical. In such cases logistic regression provides a way to link the binomial outcome to continuous or categorical predictor variables. Bayesian Binomial regression differs from the normal logistic regression in the sense that it makes use of priors of the coefficients of the predictor variables in arriving at the posterior distribution of probability. In this project we attempt to discover the relationship between age as a predictor variable and successful subscription as theresponse variable using Bayesian Binary Regression.

Technologies Used:

• Matlab
• R
• MS Excel