2. Using the information in the MGM Players Club dataset, discuss the differences in the

various segments of players at the MGM Grand. Some hints for potential analyses:

a.

Begin by classifying customers according to their attractiveness from a static point

of view (current profitability). Measure the concentration of profits.

b. Look at some aspects of behavior of the different groups (Note: to achieve

consistency in the class discussion, please use as cut-off points total theoretical win

of $500, $10,000 and 1,000):

i. Number of trips

ii. Trip length

iii. Whether they play in tables or slots

iv. Loyalty to a certain property

c. Expand your study by measuring attractiveness from a dynamic point of view

(current and future profitability). The three-year span of the databases is insufficient

for a rigorous lifetime value analysis but adequate for a discussion of basic concepts

and tools used to assess customer attractiveness. For instance, what player

characteristics in 2002 increase the likelihood that a player will come back in 2004?