Which action should the consultant take?

consultant is reviewing a model that is set to maximize the daily sales quantity of consumer products in stores, and they see this recommendation.

Which action should the consultant take?
A . Verify client expectations that Store is a strong predictor for daily sales quantity.
B . Remove the Store field from the model definition, because that is the recommended action.
C . Ignore alert; the explanation of variation is only 35%, which is below 50%,

View Answer

Answer: A

Explanation:

Upon reviewing the data model and noticing the high correlation alert between ‘Store’ and daily sales quantity, the appropriate action is to verify with the client their expectations regarding the influence of the Store field on daily sales.

Here’s the rationale:

Understanding the Role of ‘Store’ in the Model: Before making any changes to the model, it’s crucial to understand whether the ‘Store’ field is expected to be a strong predictor based on the business context. If the client expects that different stores inherently have different sales volumes due to factors like location, size, or customer base, this correlation may be both meaningful and desired. Potential Data Leakage: High correlation warnings can sometimes indicate data leakage, where a predictor (like ‘Store’) might inadvertently include information about the outcome variable (daily sales quantity). It’s essential to verify whether this correlation makes sense logically or if it’s skewing the model predictions.

Client Consultation: Consulting with the client helps ensure that any modeling decisions align with their business knowledge and expectations. It’s about validating the model against real-world expectations and ensuring it remains a useful tool for decision-making.

By taking these steps, the consultant not only adheres to best practices in data science by validating model inputs and their implications but also ensures that the model aligns with the client’s business strategies and operational realities.