By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies and assignment criteria:

• Competency 1: Evaluate the process and workflows used in data interpretation and analysis.
  • Explain how k-nearest neighbor, a prescriptive data mining technique, is applied within business analytics.
• Competency 2: Evaluate the quality and constraints of source data used to solve business problems.
  • Describe how the accuracy of the test data can influence a data mining model.
• Competency 3: Apply statistical analysis and calculations in data mining.
  • Explain where and when to use k-nearest neighbor when using the data mining technique for recommendations.
• Competency 4: Use statistical software to manipulate data to solve business problems.
  • Create a k-nearest neighbor data mining model with a statistical software tool.
• Competency 5: Communicate effectively.
  • Communicate effectively.

Instructions

Create a data mining k-nearest neighbor model using the Who Has the Most Credits? spreadsheet, linked in the Resources, as the dataset. You may use SAS Enterprise Guide, Enterprise Miner, or any other software to create your model.

Then, based on your model, write an analysis that does the following:

• Interpret the model you created in the context of Business Intelligence generation. How many customers are more likely to purchase a widget from the corporation represented in the spreadsheet? Given the distance between the training dataset and the visiting customers, what recommendations would you make to improve the model? Explain how you would model the data using a decision-tree model.
• Evaluate the company's true objective regarding data mining and Business Intelligence.

Be sure to address each of the scoring guide criteria in your analysis and to include the model you created in the appendix of your paper.

Other Requirements

• Written communication: Written communication should be free of errors that detract from the overall message.
• APA formatting: Your paper should be formatted according to the current APA style and formatting and should include a cover page and table of contents.
• Length: 2–3 typed and double-spaced pages, plus a cover page, table of contents, and appendix.
• Font and font size: Times New Roman, 12 point.