What should the consultant do?

A consultant is preparing a dataset to predict customer lifetime value and is collecting data from a questionnaire that asks for demographic information. A very small number of respondents fill in the Income box, but the consultant thinks that it is an informative column even though it only represents 1% of respondents.

What should the consultant do?
A . Fill in the missing data with an average of all incomes.
B . Apply the predict missing values transformation in recipe nodes.
C . Drop the field as it will be difficult to get future respondents.

View Answer

Answer: B

Explanation:

In CRM Analytics, when dealing with incomplete data, specifically when certain respondents have not filled out fields like income, the Predict Missing Values transformation in a recipe is highly effective. This transformation allows you to predict values for missing fields based on patterns from the existing data. Since the consultant finds this field informative despite having data from only 1% of respondents, applying this transformation can estimate these missing values, which ensures that the dataset remains useful for predictive purposes without discarding important variables.

Reference: CRM Analytics Recipes and Predict Missing Values