Developing a business strategy by combining machine learning with sensitivity analysis Amazon Web Services

Machine learning (ML) is routinely used by countless businesses to assist with decision making. In most cases, however, the predictions and business decisions made by ML systems still require the intuition of human users to make judgment calls. In this post, I show how to combine ML with sensitivity analysis to develop a data-driven business strategy. This post focuses on customer churn (that is, the defection of customers to competitors), while covering problems that often arise when using ML-based analysis. These problems include difficulties with handling incomplete and unbalanced data, deriving strategic options, and quantitatively evaluating the potential impact of those options.