Essentials of Business Analytics: An Introduction to the Methodology and its Applications

971 Pages·2018·15.707 MB·English

by  Bhimasankaram Pochiraju, Sridhar Seshadri

International Series in
Operations Research & Management Science
Bhimasankaram Pochiraju
Sridhar Seshadri E ditors
Essentials
of Business
Analytics
An Introduction to the Methodology
and its Applications
International Series in Operations Research
& Management Science
Volume 264
SeriesEditor
CamilleC.Price
StephenF.AustinStateUniversity,TX,USA
AssociateSeriesEditor
JoeZhu
WorcesterPolytechnicInstitute,MA,USA
FoundingSeriesEditor
FrederickS.Hillier,StanfordUniversity,CA,USA
Moreinformationaboutthisseriesathttp://www.springer.com/series/6161
Bhimasankaram Pochiraju • Sridhar Seshadri
Editors
Essentials of Business
Analytics
An Introduction to the Methodology
and its Applications
123
Editors
BhimasankaramPochiraju SridharSeshadri
AppliedStatisticsandComputingLab GiesCollegeofBusiness
IndianSchoolofBusiness UniversityofIllinoisatUrbanaChampaign
Hyderabad,Telangana,India Champaign,IL,USA
ISSN0884-8289 ISSN2214-7934 (electronic)
InternationalSeriesinOperationsResearch&ManagementScience
ISBN978-3-319-68836-7 ISBN978-3-319-68837-4 (eBook)
https://doi.org/10.1007/978-3-319-68837-4
©SpringerNatureSwitzerlandAG2019
Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof
thematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation,
broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation
storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology
nowknownorhereafterdeveloped.
Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication
doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant
protectivelawsandregulationsandthereforefreeforgeneraluse.
Thepublisher,theauthors,andtheeditorsaresafetoassumethattheadviceandinformationinthisbook
arebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor
theeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinorforany
errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional
claimsinpublishedmapsandinstitutionalaffiliations.
ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG.
Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland
ProfessorBhimasankaram:Withthedivine
blessingsofBhagawanSriSriSriSatyaSai
Baba,Idedicatethisbooktomyparents—Sri
PochirajuRamaRaoandSmt.Venkata
Ratnamma.
SridharSeshadri:Idedicatethisbookto
thememoryofmyparents,Smt.Ranganayaki
andSriDesikachariSeshadri,my
father-in-law, SriKalyanaSrinivasan
Ayodhyanath,andmydearfriend,
collaboratorandadvisor,Professor
Bhimasankaram.
Contents
1 Introduction................................................................. 1
SridharSeshadri
PartI Tools
2 DataCollection.............................................................. 19
SudhirVoleti
3 DataManagement—RelationalDatabaseSystems(RDBMS)......... 41
HemanthKumarDasararajuandPeeyushTaori
4 BigDataManagement ..................................................... 71
PeeyushTaoriandHemanthKumarDasararaju
5 DataVisualization.......................................................... 111
JohnF.Tripp
6 StatisticalMethods:BasicInferences .................................... 137
VishnuprasadNagadevara
7 StatisticalMethods:RegressionAnalysis................................ 179
BhimasankaramPochirajuandHemaSriSaiKollipara
8 AdvancedRegressionAnalysis............................................ 247
VishnuprasadNagadevara
9 TextAnalytics............................................................... 283
SudhirVoleti
PartII ModelingMethods
10 Simulation................................................................... 305
SumitKunnumkal
11 IntroductiontoOptimization.............................................. 337
MilindG.Sohoni
vii
viii Contents
12 ForecastingAnalytics ...................................................... 381
KonstantinosI.NikolopoulosandDimitriosD.Thomakos
13 CountDataRegression..................................................... 421
ThriyambakamKrishnan
14 SurvivalAnalysis ........................................................... 439
ThriyambakamKrishnan
15 MachineLearning(Unsupervised) ....................................... 459
ShaileshKumar
16 MachineLearning(Supervised) .......................................... 507
ShaileshKumar
17 DeepLearning .............................................................. 569
ManishGupta
PartIII Applications
18 RetailAnalytics............................................................. 599
RamandeepS.Randhawa
19 MarketingAnalytics........................................................ 623
S.ArunachalamandAmaleshSharma
20 FinancialAnalytics......................................................... 659
KrishnamurthyVaidyanathan
21 SocialMediaandWebAnalytics.......................................... 719
VishnuprasadNagadevara
22 HealthcareAnalytics....................................................... 765
Maqbool(Mac)DadaandChesterChambers
23 PricingAnalytics............................................................ 793
KalyanTalluriandSridharSeshadri
24 SupplyChainAnalytics.................................................... 823
YaoZhao
25 CaseStudy:IdealInsurance .............................................. 847
DeepakAgrawalandSoumithriMamidipudi
26 CaseStudy:AAAAirline.................................................. 863
DeepakAgrawal,HemaSriSaiKollipara,andSoumithriMamidipudi
27 CaseStudy:InfoMediaSolutions......................................... 873
DeepakAgrawal,SoumithriMamidipudi,andSriramPadmanabhan
28 IntroductiontoR ........................................................... 889
PeeyushTaoriandHemanthKumarDasararaju
Contents ix
29 IntroductiontoPython..................................................... 917
PeeyushTaoriandHemanthKumarDasararaju
30 ProbabilityandStatistics.................................................. 945
PeeyushTaori,SoumithriMamidipudi,andDeepakAgrawal
Index............................................................................... 965
Disclaimer
This book contains information obtained from authentic and highly regarded
sources.Reasonableeffortshavebeenmadetopublishreliabledataandinformation,
but the author and publisher cannot assume responsibility for the validity of
all materials or the consequences of their use. The authors and publishers have
attemptedtotracethecopyrightholdersofallmaterialreproducedinthispublication
andapologizetocopyrightholdersifpermissiontopublishinthisformhasnotbeen
obtained.Ifanycopyrightmaterialhasnotbeenacknowledgedpleasewriteandlet
usknowsowemayrectifyinanyfuturereprint.
xi
Acknowledgements
Thisbookistheoutcomeofatrulycollaborativeeffortamongstmanypeoplewho
have contributed in different ways. We are deeply thankful to all the contributing
authorsfortheirideasandsupport.Thebookbelongstothem.Thisbookwouldnot
have been possible without the help of Deepak Agrawal. Deepak helped in every
way,fromeditorialwork,solutionsupport,programminghelp,tocoordinationwith
authors and researchers, and many more things. Soumithri Mamidipudi provided
editorialsupport,helpedwithwritingsummariesofeverychapter,andproof-edited
theprobabilityandstatisticsappendixandcases.PadmavatiSridhar providededi-
torialsupportformanychapters.Twoassociatealumni—RamakrishnaVempatiand
Suryanarayana Ambatipudi—of the Certificate Programme in Business Analytics
(CBA) at Indian School of Business (ISB) helped with locating contemporary
examples and references. They suggested examples for the Retail Analytics and
SupplyChainAnalyticschapters.Ramakrishnaalsocontributedtothedraftofthe
Big Data chapter. Several researchers in the Advanced Statistics and Computing
Lab (ASC Lab) at ISB helped in many ways. Hema Sri Sai Kollipara provided
support for the cases, exercises, and technical and statistics support for various
chapters. Aditya Taori helped with examples for the machine learning chapters
andexercises.SaurabhJugalkishor contributedexamplesforthemachinelearning
chapters. The ASC Lab’s researchers and Hemanth Kumar provided technical
supportinpreparingsolutionsforvariousexamplesreferredinthechapters.Ashish
Khandelwal, Fellow Program student at ISB, helped with the chapter on Linear
Regression. Dr. Kumar Eswaran and Joy Mustafi provided additional thoughts for
theUnsupervisedLearningchapter.TheeditorialteamcomprisingFaithSu,Mathew
Amboy and series editor Camille Price gave immense support during the book
proposal stage, guidance during editing, production, etc. The ASC Lab provided
theresearchsupportforthisproject.
We thank our families for the constant support during the 2-year long project.
Wethankeachandeverypersonassociatedwithusduringthebeautifuljourneyof
writingthisbook.
xiii