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2009 Mar 13
1
Hierarchical Bayesian Modeling in R
...;m trying to model the consumer decisions (Click-Through Rate and Conversion) in Search Engine Advertising using a hierarchical Bayesian binary logit. The input data is the weekly CTRs and Avg. Position for each search keyword. CTR is modeled as (for each keyword i and week j): Pij = exp(C + Bi x Positionij + A1 x Lengthi + A2 x Brandi + A3 x ProductSpecifici) / [1 + exp(C + Bi x Positionij + A1 x Lengthi + A2 x Brandi + A3 x ProductSpecifici)] The Position coefficient Bi is in turn allowed to vary along the population mean (B1) and the keyword characteristics as: Bi = B1 + K1 x Lengthi + K2 x Bra...