import pandas as pd import numpy as np from datetime import datetime, timedelta import random # Define the Electronics products electronics_products = [ {"name": "4K Smart TV", "cost": 500, "price": 699}, {"name": "Wireless Headphones", "cost": 100, "price": 139}, {"name": "Gaming Console", "cost": 300, "price": 419}, {"name": "Digital Camera", "cost": 400, "price": 559}, {"name": "Bluetooth Speaker", "cost": 50, "price": 69}, {"name": "Smartwatch", "cost": 150, "price": 209}, {"name": "Laptop", "cost": 600, "price": 839}, {"name": "Tablet", "cost": 200, "price": 279}, {"name": "Drone", "cost": 250, "price": 349}, {"name": "Home Theater System", "cost": 350, "price": 489}, {"name": "E-reader", "cost": 80, "price": 109}, {"name": "Portable Power Bank", "cost": 30, "price": 41}, {"name": "Wireless Earbuds", "cost": 80, "price": 109}, {"name": "Action Camera", "cost": 150, "price": 209}, {"name": "Smart Home Hub", "cost": 70, "price": 97}, {"name": "Gaming Mouse", "cost": 40, "price": 55}, {"name": "External Hard Drive", "cost": 60, "price": 83}, {"name": "Graphic Tablet", "cost": 180, "price": 249}, {"name": "Noise-Canceling Headphones", "cost": 200, "price": 279}, {"name": "Portable Projector", "cost": 300, "price": 419} ] # Define the RCT variants variants = ['Control', '5% discount', '10% discount', '15% discount'] discount_rates = [0, 0.05, 0.10, 0.15] def calculate_purchase_probability(customer, discount, base_prob=0.1): """ Calculate the probability of a customer making a purchase based on various factors. This function considers customer attributes such as age, loyalty, past behavior, and the applied discount to determine the likelihood of a purchase. Args: customer (dict): A dictionary containing customer attributes discount (float): The discount rate applied (e.g., 0.05 for 5% discount) base_prob (float): The base probability of purchase (default: 0.1) Returns: float: The calculated probability of purchase """ prob = base_prob # Age factor (younger customers more sensitive to discounts) age_factor = (60 - customer['age']) / 60 prob += 0.02 * age_factor # Loyalty factor (more loyal customers less sensitive to discounts) loyalty_factor = (6 - customer['loyalty_level']) / 5 prob += 0.02 * loyalty_factor # Past behavior factor (customers with more orders more likely to buy, but less sensitive to discounts) order_factor = min(customer['total_orders'] / 20, 1) prob += 0.03 * order_factor # Newsletter subscription factor (subscribed customers more sensitive to discounts) if customer['newsletter_subscription']: prob += 0.03 # Browsing device factor (mobile and app users more sensitive to discounts) if customer['main_browsing_device'] == 'Mobile': prob += 0.02 elif customer['main_browsing_device'] == 'App': prob += 0.03 # Average order value factor (higher AOV customers less sensitive to discounts) aov_factor = min(customer['average_order_value'] / 1000, 1) prob -= 0.02 * aov_factor # Gender factor (assume slightly different sensitivity to discounts) if customer['gender'] == 'Female': prob += 0.01 elif customer['gender'] == 'Male': prob -= 0.01 # Preferred payment method factor if customer['preferred_payment_method'] == 'Credit Card': prob += 0.02 # Credit card users might be more likely to make impulse purchases # Adjust probability based on discount with increased sensitivity discount_sensitivity = 1 + age_factor - loyalty_factor + (0.5 if customer['newsletter_subscription'] else 0) if discount == 0.05: prob *= (1 + discount * 3.5 * discount_sensitivity) elif discount == 0.1: prob *= (1 + discount * 4.5 * discount_sensitivity) elif discount == 0.15: prob *= (1 + discount * 4.3 * discount_sensitivity) # Add random noise to the probability noise = np.random.normal(0, 0.02) # Add noise with mean 0 and std dev 0.02 prob = max(0, min(1, prob + noise)) return prob def simulate_purchase(customer, variant_index, product): """ Simulate a purchase based on the customer, variant, and product. This function determines if a purchase is made, and if so, calculates the discounted price, cost, and profit. Args: customer (dict): A dictionary containing customer attributes variant_index (int): The index of the variant (discount level) product (dict): A dictionary containing product information Returns: dict or None: A dictionary with purchase details if a purchase is made, None otherwise """ discount = discount_rates[variant_index] prob = calculate_purchase_probability(customer, discount) if np.random.random() < prob: # Add some noise to the discounted price price_noise = np.random.normal(0, product['price'] * 0.05) # 5% noise discounted_price = max(0, product['price'] * (1 - discount) + price_noise) # Add some noise to the cost cost_noise = np.random.normal(0, product['cost'] * 0.03) # 3% noise adjusted_cost = max(0, product['cost'] + cost_noise) return { 'customer_id': customer['customer_id'], 'variant': variants[variant_index], 'product': product['name'], 'price': product['price'], 'discounted_price': discounted_price, 'cost': adjusted_cost, 'profit': discounted_price - adjusted_cost } return None def run_rct_simulation(df, experiment_duration=30): """ Run a Randomized Control Trial (RCT) simulation. This function simulates an RCT by assigning customers to different variants and simulating purchases over the experiment duration. Args: df (pandas.DataFrame): The customer data experiment_duration (int): The duration of the experiment in days (default: 30) Returns: tuple: Contains two DataFrames - transactions and variant assignments """ # Set random seed for reproducibility np.random.seed(42) random.seed(42) # Set up experiment dates start_date = datetime(2024, 7, 1) end_date = start_date + timedelta(days=experiment_duration) results = [] variant_assignments = [] for _, customer in df.iterrows(): # Add some randomness to variant assignment if np.random.random() < 0.05: # 5% chance of random assignment variant_index = np.random.randint(0, 4) else: variant_index = np.random.randint(0, 4) # Original random assignment # Record variant assignment for all eligible customers variant_assignments.append({ 'customer_id': customer['customer_id'], 'variant': variants[variant_index] }) # Simulate multiple purchase opportunities with varying frequency num_opportunities = np.random.poisson(experiment_duration / 10) for _ in range(num_opportunities): product = random.choice(electronics_products) purchase = simulate_purchase(customer, variant_index, product) if purchase: results.append(purchase) # Create DataFrame from results transactions_df = pd.DataFrame(results) transactions_df['purchase'] = 1 # Create DataFrame from variant assignments variant_assignments_df = pd.DataFrame(variant_assignments) return transactions_df, variant_assignments_df