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1. A predictive model is to be used in a campaigning for promoting a product to maximize the profit by identifying the customers who are

1. A predictive model is to be used in a campaigning for promoting a product to maximize the profit by identifying the customers who are most likely to respond. As given by the model, percentage of respondents captured, by addressing various percentage of population based on the company's customers' database are given in the following table. % of population 10 20 30 40 50 60 70 80 90 100 % of 25 45 60 78 90 93 97 98 99 100 Respondents The other details are as given below. Cost of sending brochure to one person (Rs.) Value if someone responds (Rs.) Fixed Cost for the campaign (Rs.) Population Size 10 100 (without cost adjustment) 40000 10000 Assume an overall response rate of 20%. (i) (111) Obtain the table for profit/loss" versus "Top deciles of population for target marketing' showing the necessary computation. Based on the answer to (i) above, what percentage of population is to be considered for sending brochures for the maximum profit? Tabulate the heights of the bars in the decile lift chart for the given data showing the necessary computation

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