Below is a table of average sale information that a local small grocery store ha
ID: 457514 • Letter: B
Question
Below is a table of average sale information that a local small grocery store has collected from 4pm to 6pm on every Friday.
a) Use Market Basket Analysis (Support, Confidence, and Lift) to compare two cases.
Case 1: Consumer who bought potato chips also bought milk
Case 2: Consumer who bought soda also bought milk
b) What does the result in a) imply? Please interpret the results in a).
c) Based on the results in a), suggest a strategy which the store owner could implement to increase sales of milk.
Total 50 Beer Pot. Chips Milk Diapers Soda 1 12 10 12 items Beer Pot. Chips Milk Diapers Soda 3Explanation / Answer
Market Basket Analysis is about the association rules in the form of if X then Y.
Support (S) is the fraction of the transactions containing both X and Y.
Confidence (C) measure how often each item in Y appear in transaction that contains X
C = Support (X+Y)/Support(X)
Lift of the rule X=> Y is the confidence of the rule divided by the expected confidence assuming that the items are independent given as Support(X+Y)/{Support(X)*Support(Y)}
a) Use Market Basket Analysis (Support, Confidence, and Lift) to compare two cases.
Case 1: Consumer who bought potato chips also bought milk
In the given matrix, let us calculate the total number of transactions as sum of all possible combinationslike beer aloneor beer with potato chips or beer with milk etc., therefore total number of transactions are 34.
There are only 3 transactions showing potato chips with milk, therefore Support = 3/34, Confidence = 3/10 and
Lift = 3/(10*9) =1/30
Case 2: Consumer who bought soda also bought milk
There are only one transaction of soda with milk, therefore Support = 1/34, Confidence = 1/12 and Lift = 1/108
b) What does the result in a) imply? Please interpret the results in a).
From above the corelationship between Potato chips and Milk is more than the correlationship between Soda and milk. In other words a person buying potato chips may buy milk also have more probalility than that of a person buying soda and milk.
c) Based on the results in a), suggest a strategy which the store owner could implement to increase sales of milk.
The strategy may be to give discounts on combined sales of potato chips and milk.
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