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Jim Grayson - Building Better Models with JMP Pro

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Building Better Models with JMP Pro provides an example-based introduction to business analytics, with a proven process that guides you in the application of modeling tools and concepts. It gives you the what, why, and how of using JMP Pro for building and applying analytic models. This book is designed for business analysts, managers, and practitioners who may not have a solid statistical background, but need to be able to readily apply analytic methods to solve business problems. In addition, this book will greatly benefit faculty members who teach any of the following subjects at the lower to upper graduate level: predictive modeling, data mining, and business analytics. Novice to advanced users in business statistics, business analytics, and predictive modeling will find that it provides a peek inside the black box of algorithms and the methods used. Topics include: regression, logistic regression, classification and regression trees, neural networks, model cross-validation, model comparison and selection, and data reduction techniques. Full of rich examples, Building Better Models with JMP Pro is an applied book on business analytics and modeling that introduces a simple methodology for managing and executing analytics projects. No prior experience with JMP is needed. Make more informed decisions from your data using this newest JMP book.

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BuildingBetterModelswithJMPPro JimGraysonSamGardnerMiaLStephens - photo 1

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BuildingBetterModelswithJMPPro

JimGraysonSamGardnerMiaL.Stephens

support.sas.com/bookstore

Thecorrectbibliographiccitationforthismanualisasfollows:Grayson,Jim,Gardner,Sam,andStephens, Mia.2015. BuildingBetterModelswithJMPPro.Cary,NC:SASInstituteInc.

BuildingBetterModelswithJMPPro

Copyright2015,SASInstituteInc.,Cary,NC,USA

ISBN978-1-62959-056-1(Hardcopy)

ISBN978-1-62959-956-4(EPUB)

ISBN978-1-62959-957-1(MOBI)

ISBN978-1-62959-958-8(PDF)

Allrightsreserved.ProducedintheUnitedStatesofAmerica.

Forahardcopybook:Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,or transmitted,inanyformorbyanymeans,electronic,mechanical,photocopying,orotherwise,withoutthe priorwrittenpermissionofthepublisher,SASInstituteInc.

Forawebdownloadore-book:Youruseofthispublicationshallbegovernedbythetermsestablishedby thevendoratthetimeyouacquirethispublication.

Thescanning,uploading,anddistributionofthisbookviatheInternetoranyothermeanswithoutthe permissionofthepublisherisillegalandpunishablebylaw.Pleasepurchaseonlyauthorizedelectronic editionsanddonotparticipateinorencourageelectronicpiracyofcopyrightedmaterials.Yoursupportof othersrightsisappreciated.

U.S.GovernmentLicenseRights;RestrictedRights:TheSoftwareanditsdocumentationiscommercial computersoftwaredevelopedatprivateexpenseandisprovidedwithRESTRICTEDRIGHTStotheUnited StatesGovernment.Use,duplication,ordisclosureoftheSoftwarebytheUnitedStatesGovernmentis subjecttothelicensetermsofthisAgreementpursuantto,asapplicable,FAR12.212,DFAR227.7202-1(a), DFAR227.7202-3(a),andDFAR227.7202-4,and,totheextentrequiredunderU.S.federallaw,the minimumrestrictedrightsassetoutinFAR52.227-19(DEC2007).IfFAR52.227-19isapplicable,this provisionservesasnoticeunderclause(c)thereofandnoothernoticeisrequiredtobeaffixedtothe Softwareordocumentation.TheGovernmentsrightsinSoftwareanddocumentationshallbeonlythoseset forthinthisAgreement.

SASInstituteInc.,SASCampusDrive,Cary,NC27513-2414

August2015

SASandallotherSASInstituteInc.productorservicenamesareregisteredtrademarksortrademarksof SASInstituteInc.intheUSAandothercountries.indicatesUSAregistration.

Otherbrandandproductnamesaretrademarksoftheirrespectivecompanies.

Contents

Acknowledgments

Dedication

Toallthepeoplewhohavepatientlyencouragedandsupportedmethrough thisproject,especiallymywifeandchildren.

SG

ToMichael,Muffin,andBubbathanksforyourpatienceandsupport!

MS

Tomyparents,JohnandBeverly,andmywife,Cindymygreatencouragers.

JG

Acknowledgments

Wewishtoexpressourgratitudetothereviewerswhoprovidedmanyhelpful suggestions.Thisbookismuchbetterbecauseofyourcontributions.

Thanksto:

MicheleBoulanger

MichaelCrotty

GoutamChakraborty

WilliamDuckworth

SuneelGrover

DuaneHayes

MattLiberatore

RobertNydick

DanObermiller

SueWalsh

AboutThisBook

Purpose

Thisbookisdesignedforthestudentwantingtopreparefortheirprofessional careerwhorecognizestheneedforunderstandingofboththemechanicsand theconceptsofpredominantanalyticmodelingtoolsandalsohowtoapply methodsinsolvingreal-worldbusinessproblems.Thisbookisalsodesigned tomeettheneedsofthepractitionerwhowantstoobtainahands-on understandingofbusinessanalyticstomakebetterdecisionsfromdataand modelsandtoapplytheseconceptsandtoolstobusinessanalyticsprojects.

IsThisBookforYou?

Thisbookisforyouifyouwanttoexploretheuseofanalyticsformaking betterbusinessdecisions,andhaveeitherbeenintimidatedbybooksthat focusonthetechnicaldetailsordiscouragedbybooksthatprimarilyfocuson thehighlevelimportanceofusingdatawithoutgettingtothehowtoofthe methodsandanalysis.

Prerequisites

Whilenotrequired,itwouldbeveryhelpfulifthereaderhastakenabasic courseinstatistics.Experiencewiththebooksoftware,JMPPro,isnot required.

ScopeofThisBook

Thisbookisnotanintroductorystatisticsbook.Whileweprovidean introductiontobasicdataanalysis,datavisualizationandanalyzing multivariatedata,forthemostpart,thestatisticaldetailsandbackground informationarenotprovided.Thisbookisalsonotahighlytechnicalbook thatdivesdeeplyintothetheoryoralgorithms,butitwillprovideinsightinto theblackboxofthemethodscovered.

Thisbookwillcoveranalytictopicsincluding:

Regression

Logisticregression

Classificationandregressiontrees

Neuralnetworks

Modelcross-validation

Itwillalsoprovideanintroductiontosomeadvancedmodelingtechniques (boosting,bagging,andregularization)inanexampledrivenstructure.

AbouttheExamples

SoftwareUsedtoDeveloptheBooksContent

JMPPro12isthesoftwareusedthroughoutthisbook.

ExampleCodeandData

Youcanaccesstheexamplecodeanddataforthisbookbylinkingtoits authorpageathttp://support.sas.com/publishing/authors.Selectthenameof theauthor.Then,lookforthecoverthumbnailofthisbook,andselect ExampleCodeandDatatodisplaytheSASprogramsthatareincludedinthis book.

Someresources,suchasinstructorresourcesandadd-insusedinthebook, willbepostedontheJMPcommunityfileexchange(community.jmp.com).

Foranalphabeticallistingofallbooksforwhichexamplecodeanddatais available,seehttp://support.sas.com/bookcode.Selectatitletodisplaythe booksexamplecode.

IfyouareunabletoaccessthecodethroughtheWebsite,sende-mailto

.

ExerciseSolutions

Westronglybelievethatforthereadertoobtainmaximumbenefitfromthis booktheyshouldplayalongandcompletetheexamplesdemonstratedin eachchapter.Also,attheendofeachchapteraresuggestedexercisesto practicewhathasbeendiscussedinthechapter.

AdditionalHelp

Althoughthisbookillustratesmanyanalysesregularlyperformedin businessesacrossindustries,questionsspecifictoyouraimsandissuesmay arise.Tofullysupportyou,SASInstituteandSASPressofferyouthe followinghelpresources:

Forquestionsabouttopicscoveredinthisbook,contacttheauthor throughSASPress:

Sendquestionsbyemailto;includethebooktitle inyourcorrespondence.

Submitfeedbackontheauthorspageat

http://support.sas.com/author_feedback.

Forquestionsabouttopicsinorbeyondthescopeofthisbook,post queriestotherelevantSASSupportCommunitiesat

https://communities.sas.com/welcome.

SASInstitutemaintainsacomprehensivewebsitewithup-to-date information.Onepagethatisparticularlyusefultoboththenoviceand theseasonedSASuserisitsKnowledgeBase.Searchforrelevantnotes intheSamplesandSASNotessectionoftheKnowledgeBaseat

http://support.sas.com/resources.

RegisteredSASusersortheirorganizationscanaccessSASCustomer Supportathttp://support.sas.com. Hereyoucanposespecificquestions toSASCustomerSupport;under Support,click SubmitaProblem.You willneedtoprovideanemailaddresstowhichrepliescanbesent, identifyyourorganization,andprovideacustomersitenumberor licenseinformation.ThisinformationcanbefoundinyourSASlogs.

KeepinTouch

Welookforwardtohearingfromyou.Weinvitequestions,comments,and concerns.Ifyouwanttocontactusaboutaspecificbook,pleaseincludethe booktitleinyourcorrespondence.

ContacttheAuthorthroughSASPress

Bye-mail:

ViatheWeb:http://support.sas.com/author_feedback

PurchaseSASBooks

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Phone:1-800-727-0025

E-mail:

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