Why does rebalancing work as a surrogate for misclassification costs? Use the following information for Exercises 2744.

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Why does rebalancing work as a surrogate for misclassification costs? Use the following information for Exercises 27–44. Suppose that our client is a retailer seeking to maximize revenue from a direct marketing mailing of coupons to likely customers for an upcoming sale. A positive response represents a customer who will shop the sale and spend money. A negative response represents a customer who will not shop the sale and spend money. Suppose that mailing a coupon to a customer costs $5, and that previous experience suggests that those who shopped similar sales spent an average of $100.

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Data Mining And Predictive Analytics

ISBN: 9781118868676

2nd Edition

Authors: Daniel T Larose, Chantal D Larose

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