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Copyright © 2010 SAS Institute Inc. All rights reserved.
2016 INFORMS InternationalThe Analytics Tool Kit: A Case Study with JMP ProMia Stephens – [email protected]
http://bit.ly/1UyGW57
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Background
§ TQM Coordinator/Six Sigma MBB
§ Founding Partner, Statistical Trainer and Consultant, North Haven Group
§ Senior Consultant and Trainer, George Group (now Accenture)
§ Adjunct Professor Statistics, University of New Hampshire
§ Academic Ambassador, JMP Academic Team
§ Author
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Background
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Copyright © 2010, SAS Institute Inc. All rights reserved.
What is JMP (and JMP Pro)?§ Statistical Discovery Software from SAS
§ Developed in 1989
§ For teaching and doing§ Comprehensive§ Basic§ Advanced
§ Extendible§ powerful scripting language§ application and add-in builders§ Excel, R, MATLAB, and SAS
§ Visual, dynamic and interactive
§ JMP Pro – Advanced tools for analytics and modeling
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Copyright © 2010, SAS Institute Inc. All rights reserved.
What is Analytics?
“…an encompassing and multidimensional field that uses mathematics, statistics, predictive modeling and machine-learning techniques to find meaningful patterns and knowledge in recorded data.”
§ Descriptive statistics
§ Predictive analytics
§ Prescriptive analytics
From SAS Analytics: http://www.sas.com/en_us/insights/analytics/what-is-analytics.html
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Copyright © 2010, SAS Institute Inc. All rights reserved.
What is Analytics?§ Descriptive statistics
§ Understand what happened and why§ Exploratory and explanatory modeling
§ Predictive analytics § Using past data and predictive algorithms to determine what will happen next
§ Predictive modeling
§ Prescriptive analytics§ Answering the question of what to do, by providing information on optimal decisions based on the predicted future scenarios
§ Simulation and optimization
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Copyright © 2010, SAS Institute Inc. All rights reserved.
The Business Analytics Process
Define the Problem
Prepare for Modeling
Modeling
Deploy Model
Monitor Performance
Business Problem
BusinessAnalyticsProcess
From Building Better Models with JMP Pro, Grayson, Gardner and Stephens, 2015.
May loop back at any step
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Key Tools:• SQL/Query• Data table structuring - join, concatenate, update, stack, summarize,…
• Summary statistics and graphical displays, interactive tools and filtering Multivariate procedures (clustering, PCA,…)
• Transformations, creating derived variables
• Missing data utilities, outlier analysis, recoding, binning
• Creating holdout set(s)
Data Preparation: Activities and ToolsKey Activities:• Determine which data are needed
• Compile (or collect new) data• Explore, examine and understand data
• Assess data quality• Clean and transform data• Define features• Reduce dimensionality• Create training, validation and test sets
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Key Tools:• Multiple Regression• Logistic Regression• Naïve Bayes• kNN• Classification and Regression Trees• Bootstrap Forests and Boosted Trees
• Neural Networks• Generalized Linear Models• Survival Models• Forecasting/Time Series• Model Comparison• Text Mining
Modeling: Activities and ToolsKey Activities:• Choose the appropriate modeling method or methods
• Fit one or more models• Evaluate the performance of each model using validation statistics (misclassification, RMSE, Rsquare)
• Choose the best model or set of models to address the analytics problem (and ultimately the business problem)
• **Create ensemble models
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Define the Problem
Prepare for Modeling
Modeling
Deploy Model
Monitor Performance
Business Problem
BusinessAnalyticsProcess
May loop back at any step
Key Activities and Tools:• Deliver the model and model results to the business or internal customers
• Communicate results (graphs and profilers, summaries, explore “what if” scenarios)
• Assist in applying model insights and implementing ongoing use of the model
• Document the project• Follow up with the business sponsor to close out the project
Deploy Models: Activities and Tools
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Case Study: Property Values on the Big Island
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Case Study: Property Values on the Big Island
Data from Redfin.com. Downloaded June 6, 2016.
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Copyright © 2010, SAS Institute Inc. All rights reserved.
The Business Analytics Process
Define the Problem
Prepare for Modeling
Modeling
Deploy Model
Monitor Performance
Business Problem
BusinessAnalyticsProcess
From Building Better Models with JMP Pro, Grayson, Gardner and Stephens, 2015.
May loop back at any step
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Copyright © 2010, SAS Institute Inc. All rights reserved.
For more information…§ jmp.com/academic
§ Learning library (guides and videos)§ Case studies§ Tools for teaching statistical concepts§ Books for teaching with JMP
§ jmp.com/jac§ Discussion forum§ File exchange§ More teaching and learning resources
§ This slide deck and data set§ http://bit.ly/1UyGW57
Copyright © 2010 SAS Institute Inc. All rights reserved.
[email protected]/academic
Discussion and Q&A
