Spreadsheet Computation of Market Basket Analysis

By Kardi Teknomo, PhD .

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Market Basket Analysis using Excel

For our demonstration example, we have only 4 items (Apple, Banana, Cherry and Durian), therefore it is possible to compute exhaustively. We will use MS Excel 2007 for this purpose. Spreadsheet companion of this tutorial can be downloaded here

Step by step computation of Market Basket Analysis is as follow:

Generate all possible association rules

Compute the support and confidence of all possible association rules

Apply two threshold criteria: minimum support and minimum confidence to obtain the association rules.

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