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ColtAllen / btyd

Buy Till You Die and Customer Lifetime Value statistical models in Python.
https://btyd.readthedocs.io/
Apache License 2.0
114 stars 9 forks source link

Wrong Holdout Monetary Value #51

Open ColtAllen opened 2 years ago

ColtAllen commented 2 years ago

This is an unresolved issue with the legacy Lifetimes library that I think warrants further investigation. If the calibration_and_holdout_data function in utils.py is indeed not calculating monetary value correctly between the holdout (training) and calibration (test) datasets, then this is a serious bug that will impact the ability to properly evaluate the GammaGamma model.

ColtAllen commented 2 years ago

It seems the summary_data_from_transaction_data function is worth looking into as well. Any outstanding issues involving monetary value need to be resolved before GammaGammaModel is added.

ColtAllen commented 2 years ago

After reviewing this paper, the monetary value calculations are being done properly:

http://brucehardie.com/notes/022/RFM_summary_in_Excel.pdf

However, a test should still be added to ensure the output of calibration_and_holdout_data matches that of the paper.