Project - R Coding and Modelling

Problem 1 -

As a data scientist hired by Uber you have been asked to simply figure out ways to reduce costs. However, you only have the attached customer data as input. Uber has said that this customer's behaviour is representative of a important sector of the market in the Al Naseem area.

Your task is to figure out if the question of 'how costs can be reduced', can be answered by the given data. Your initial consultation with someone in finance reveals that troublesome customers, defined as undecisive customers that keep cancelling their ubers after ordering them without the 5 minutes elapsing, are an increasing cost.

Your further discussion with the product engineering manager shows that there is an idea for creating a private rating of uber users based on this troublesome behaviour: users who cancel a large percentage of their trips will be given low ratings. And users with low ratings will not be 'actually assigned ubers' (even though the application may show otherwise) until a few minutes after they have ordered the uber.

(a) Explain briefly how costs can be reduced with such a rating system.

(b) Suggest a refined question about saving costs, and what you expect to benefit from answering this question.

(c) What would be a way to answer this question with the given data?

(d) Suggest a hypothesis test, stating the null and alternate hypothesis. Assume here that if the user cancels 30 percent or more of their rides then they will get low ratings.

(e) Perform the test on the attached dataset, are you inclined to accept the null or alternate hypothesis - explain your choice.

(f) Given the user data you analysed is representative of 1000 users, and assuming that cancellations within 5 minutes cost on average 3 SAR, how much money do you think you can save and over how many months?

Problem 2 - Communicate your problem, question, refined question, statistical test results and overall conclusions from Problem 4 to your manager using the necessary visualisations. You should use your results from the prior problems to inspire or encourage your final argument.

Attachment:- Assignment.rar