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a firm that sells software services has been piloting a new product and has records of 5 0 0 customers who has been piloting a

a firm that sells software services has been piloting a new product and has records of 500 customers who has been piloting a new product and has records of is the estimated gross pre either bought the services or decided not to. The target value about $2128. Hows profit from each sale (excluding sales costs). The global mean is it comes to $2500 for developed a predictive of the 500 customers (whether they buy or not). The firm future. The cumulative gadel in hopes of being able to identify the top spenders in the in Figure 5.14.
FIGURE 5.14 CUMULATIVE GAINS AND DECILE-WISE LIFT CHARTS FOR SOFTWARE SERVICES PRODUCT SALES (HOLDOUT SET)
a. If the company begins working with a new set of 1000 leads to sell the same services, similar to the 500 in the pilot study (except the company has not tried to sell the services to the new leads before), without any use of predictive modeling to target sales efforts, what is the estimated gross profit?
b. If the firm wants the average gross profit on each sale to roughly double the sales effort cost and applies an appropriate threshold with this predictive model to a new set of 1000 leads, how far down the new list of 1000 should it proceed (how many deciles)?
c. Still considering the new list of 1000 leads, if the company applies this predictive model with a lower threshold of $2500, how far should it proceed down the ranked leads, in terms of deciles?
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