btyd
btyd copied to clipboard
ColtAllen
Wrong Holdout Monetary Value
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.
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.
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.