Question
A firm that sells software services has been piloting a new product and records 500 customers who have either bought the services or decided not
A firm that sells software services has been piloting a new product and records 500 customers who have either bought the services or decided not to. The target value is the estimated profit from each sale (excluding sales costs). The global mean is about $2500. However, the cost of the sales effort is not cheapthe company figures it comes to $2500 for each of the 500 customers (whether they buy or not). The firm developed a predictive model in hopes of being able to identify the top spenders in the future. The lift and decile charts for the validation set are shown below:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started