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A computer manufacturer plans to boost the sales of its most popular laptop by sending out promotional mails. We refer to a customer as a
A computer manufacturer plans to boost the sales of its most popular laptop by sending out promotional mails. We refer to a customer as a responder if he/she purchases a laptop after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The cost of promotional mail is $1.75 per customer. The cost of manufacturing and shipping a laptop is $650. With the promotion a customer pays $2200 for a laptop. Compute the average misclassification costs using the confusion matrix below. Actual Class C1 C2 Predicted Class C1 235 286 C2 110 3238 Round you answers to 3 digits after the decimal point. Cost of classifying a responder as a non-responder is $ 650 per customer. Cost of classifying a non-responder as a responder is $ 1.750 per customer. The average misclassification cost is $ 14.730
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