Capstone Project Presentation

Marty Gaupp
Nov 2015

Problem Statement: Are bad ratings (those receiving 1 star) more useful than good ratings (those receiving 5 stars), or vice versa?

I will analyze the Yelp reviews dataset to answer this question so that I can help users of Yelp determine what types of reviews they should trust more - good ratings or bad ratings.

Methods and Data - Exploratory Analysis

Results of exploratory analysis on the votes.useful variable in the Reviews dataset

Star Box Plot

Too hard to tell which rating is more useful, so turn to statistics…

Methods and Data - Aggregate Level

  • Count useful votes for each star rating - determine relative usefulness:

\[ \mbox{Relative_Usefulness} = \frac{\mbox{Useful_Vote_Count}}{\mbox{Rating_Count}} \]

  • The following data and hypothesis test results:
stars Rating_Count Useful_Vote_Count Relative_Usefulness
1 159,811 210,546 1.32
5 579,527 564,130 0.97

\[ \begin{array}{l} \mbox{H}_0: \mbox{Relative Usefulness}_1 \leq \mbox{Relative Usefulness}_5 \\ \mbox{H}_1: \mbox{Relative Usefulness}_1 > \mbox{Relative Usefulness}_5 \\ \mbox{test stat: } 55.647 \\ \mbox{p-value: } 0 \mbox{ therefore reject H}_0 \mbox{ and conclude H}_1 \\ \end{array} \]

  • Clearly, 1 star ratings are more useful than 5 star ratings

Methods and Data - Business Level

  • Determine usefulness counts/percents at the business level - results:
OneCntBetter OnePercBetter FiveCntBetter FivePercBetter NumOfBusinesses
13,530 18,901 30,724 26,067 60,785
  • Conduct hypotheses tests on counts & percents:

\[ \begin{array}{l} \mbox{H}_0: \mbox{# 1 Star Counts/Percents More Useful} \geq \mbox{# 5 Star Counts/Percents More Useful} \\ \mbox{H}_1: \mbox{# 1 Star Counts/Percents More Useful} < \mbox{# 5 Star Counts/Percents More Useful} \\ \mbox{test stat: } -125.443 \mbox{ and } -48.408 \\ \mbox{p-value: } 0 \mbox{ and } 0 \mbox{ therefore reject H}_0 \mbox{ and conclude H}_1 \\ \end{array} \]

  • In both cases, 5 star ratings are more useful than 1 star ratings

Results and Discussion

  • Contradictory results
    • In aggregate: 1 star ratings are more useful than 5 star ratings
    • At business level: 5 star ratings more useful than 1 star ratings
  • Contradiction due to Simpson's paradox
    • Statitistical result that appears in one group of data but then reverses itself when the individual groups are combined
  • Overall conclusion
    • Best to trust ratings at the individual business level
      • 5 star ratings tend to be more useful than 1 star ratings
    • But… if it's a close result, might still have to take a gamble
      • Look at the text of the votes
      • Look at the recency of the votes - trust more current ones