Algorithms in Marketing

1) Define what an algorithm is. Also explain why they are useful, USING TWO of the readings from this week.

3) Imagine you are designing an algorithm to predict whether a stock price will increase (or decrease). List a) what the output would be and b) what inputs you would likely include in your model (list at least 5 variables that you would include to help predict price change – note that you don’t have to include ALL variables that would be involved here, just pick a few that you think would be important to include).

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