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
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.