ABSTRACT
This chapter introduces genetic modeling, the machine-learning (ML) optimization approach that serves as the engine for the GenIQ Model. Whether in business or model building, optimization is central to the decision-making process. In both theory and practice, an optimization technique involves selecting the best condition within a given environment. Modeling techniques are developed to find a specific solution to a problem. The ordinary least squares (OLS) regression technique is a model formulated to address sales prediction. The GenIQ Model addresses problems in industries such as direct and database marketing and customer relationship management (CRM). The crossover operation is on two parent models by recombining randomly chosen parts of the two parent models. The expectation is that the offspring models are fitter than either parent model. The mutation operation begins by selecting a point at random within a tree. Marketers typically attempt to improve the effectiveness of their marketing strategies by targeting their best customers or prospects.
