Hey future Business Scientists, welcome back to my Business Science channel. This is Learning Lab 88 where I shared how I do Price Elasticity Modeling and Price Optimization in Python. This FULL TUTORIAL is JAMMED to the brim with value. I cover an in-depth R Price Elasticity and Optimization workshop that covers exploratory analysis, modeling events, working with outliers, using XGBoost, Tidymodels, and more!
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Table of Contents:
00:00 Price Elasticity and Optimization with Machine Learning in R (feat. XGBoost)
01:18 Agenda for Today
02:46 Why Listen To Me?
06:08 Price Optimization (Full R Tutorial)
07:35 Loading Libraries and Data Examination
12:05 Exploratory Data Analysis
14:35 Log-Log Transformation
16:00 Correlation Analysis
20:20 Outliers (Event Analysis)
23:25 Data Preparation
24:21 Machine Learning (XGBoost)
26:00 Preprocessing Recipes
29:15 Linear Regression Model (Baseline Model)
31:05 XGBoost Model
32:20 Model Performance
36:30 Conformal Prediction (with probably R package)
40:10 Model Accuracy
44:50 Return On Investment (ROI) Optimization
46:15 Price Simulation
48:45 Revenue Prediction
50:35 Smoothed Revenue Predictions
52:51 Business Insights (Which Prices Maximize Revenue)
54:20 Conclusions - Will this make you $150,000?
55:13 What They Will Pay You $150,000 For