Estimates parameters for the BG/BB model.
1 2 3 4 5
recency-frequency matrix. It must contain columns for frequency ("x"), recency ("t.x"), number of transaction opportunities in the calibration period ("n.cal"), and the number of customers with this combination of recency, frequency and transaction opportunities in the calibration period ("custs"). Note that recency must be the time between the start of the calibration period and the customer's last transaction, not the time between the customer's last transaction and the end of the calibration period.
initial BG/BB parameters - a vector with alpha, beta, gamma, and delta, in that order. Alpha and beta are unobserved parameters for the beta-Bernoulli transaction process. Gamma and delta are unobserved parameters for the beta-geometric dropout process.
the upper bound on parameters.
The best-fitting parameters are determined using the
function. The sum of the log-likelihood for each customer (for a set of
parameters) is maximized in order to estimate paramaters.
A set of starting parameters must be provided for this method. If no
parameters are provided, (1,1,1,1) is used as a default. It may be useful to
use starting values for parameters that represent your best guess of the
heterogeneity in the transaction and dropout rates of customers. It may be
necessary to run the estimation from multiple starting points to ensure that
it converges. To compare the log-likelihoods of different parameters, use
The lower bound on the parameters to be estimated is always zero, since BG/BB parameters cannot be negative. The upper bound can be set with the max.param.value parameter.
Vector of estimated paramaters.
1 2 3 4 5 6 7 8 9 10 11
data(donationsSummary) rf.matrix <- donationsSummary$rf.matrix # donationsSummary$rf.matrix already has appropriate column names # starting-point parameters startingparams <- c(1, 1, 0.5, 3) # estimated parameters est.params <- bgbb.EstimateParameters(rf.matrix, startingparams) # log-likelihood of estimated parameters bgbb.rf.matrix.LL(est.params, rf.matrix)
Loading required package: hypergeo  -33225.58
Add the following code to your website.
For more information on customizing the embed code, read Embedding Snippets.