In our business case, we realized that our fund manager wanted to identify clients who met the following criteria:
- Have been with the firm for a long time
- Are probably going to stay for a long time
- Are at risk of churn
- Continue to have AUM with the brokerage, and the reasons for this
Survival analysis models were run to try to understand how some of the business questions could be answered. Prior to that, we tried to gain an understanding of what survival analysis modeling is, the advantages it presents over other modeling types, and the various forms of the analysis techniques, namely parametric, semi-parametric, and non-parametric approaches. We also highlighted the differences between the frequentist and the Bayesian approach using PROC LIFEREG. The concept of Markov chains was also introduced in the chapter as part of the discussion on Cox models. To use these techniques...