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27. (7 points) A company that sells posters of cartoons from the 1980s and 1990s is marketing a new series of posters. They do

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27. (7 points) A company that sells posters of cartoons from the 1980s and 1990s is marketing a new series of posters. They do a new mailing to 5,000 of their customers to evaluate who is most likely to buy the new poster series. It costs $0.15 to mail the promotion to each customer and the expected contribution from each customer is approximately $7.50 (revenue from each customer is approximately $15). They then ran a decision tree analyses (the output is listed below): Cat % N No 98.4% 4,920 Yes 1.6% 80 Total 100% 5,000 Age 30 years old Cat % N Cat 96 N No 97.9% 2,545 No 99.0% 2,375 Yes 2.1% 55 Yes 1.0% 25 Total 52% 2,600 Total 48% 2,400 Gender Female Male Cat % N Cat % N No 98.6% 1,085 No 97.3% 1,460 Yes 1.4% 15 Yes 2.7% 40 Total 22% 1,100 Total 30% 1,500 College Degree Yes No Cat % N Cat % N No 97.0% 485 No 99.5% 1,890 Yes 3.0% 15 Yes 0.5% 10 Total 10% 500 Total 38% 1,900

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