m 202C 11-C My This 202 Hor Hor HC HC 50 C Horn om/#/books/9780135632697/cfi/479!/4/4@0.00:11.7 makes a profit of $200 after taking into account the $20 it spends on that customer. Constru matrix as in Exhibit 11-21 and determine which cut off value SunTV should use. 3. Are there any other factors SunTV should consider before building such a model? 11-29 Model thresholds and payoff matrices. Blanda Brothers is a produce processing company that specializes in fruits, with apple sales representing the majority of their revenue. Their main facility receives a daily shipment of apples, which are then sorted and shipped to grocery stores and to producers of apple jelly and juice, depending on the apple quality (sweetness, taste, color, etc.). The acceptable-quality apples are sold to grocery stores and low-quality apples are sold to apple processors. If a low-quality apple is sold to grocery store, the apples are returned and Blanda must pay the stores a fee to compensate the store for lost sales and for the extra work of shipping the apples back. Blanda's reputation also suffers, affecting future business. Blanda has an algorithm to determine apple quality, but the algorithm is not perfect and misclassifies apples The data science team presents their work to Cindy Hansen, the management accountant at Blanda, to help them choose between two cutoff prediction probabilities for low quality apples of 0.50 and 0.30. Apples with a predicted probability above the cut-off probability are classified as low quality, and apples below the cut-off probability are classified as acceptable quality apples. The following confusion matrices are based on the validation sample Contusion Matrix 10.30) Confusion Matrix (0.50) Predicted Outcomes Predicted Outcomes Low Acceptable Low Acceptable Quality Quality Quality Quality 130 Low Quality Actual Low Quality 50 Actual Acceptable 230 620 Outcomes Dutcomes 120 Acceptable 730 Quality Quality 1. Cindy estimates that apples of acceptable quality result in protit of $8.30 per apple. She also knows that low quality apples can be sold to juice companies to profit of $0.04. Finally, sheesti mates that the cost to-Blanda telling low-entity apple to the grocery stores an acceptable quality s51n for each low cost angle thinformation to construct payoff matrix 2. Cindy's old but we voll of ach trutcome with thoshold should the team Cho 20 RE 11 Model thresholds and payal matrices con 11-29. Amman Dom 2 to comigos grocery store colo m 202C 11-C My This 202 Hor Hor HC HC 50 C Horn om/#/books/9780135632697/cfi/479!/4/4@0.00:11.7 makes a profit of $200 after taking into account the $20 it spends on that customer. Constru matrix as in Exhibit 11-21 and determine which cut off value SunTV should use. 3. Are there any other factors SunTV should consider before building such a model? 11-29 Model thresholds and payoff matrices. Blanda Brothers is a produce processing company that specializes in fruits, with apple sales representing the majority of their revenue. Their main facility receives a daily shipment of apples, which are then sorted and shipped to grocery stores and to producers of apple jelly and juice, depending on the apple quality (sweetness, taste, color, etc.). The acceptable-quality apples are sold to grocery stores and low-quality apples are sold to apple processors. If a low-quality apple is sold to grocery store, the apples are returned and Blanda must pay the stores a fee to compensate the store for lost sales and for the extra work of shipping the apples back. Blanda's reputation also suffers, affecting future business. Blanda has an algorithm to determine apple quality, but the algorithm is not perfect and misclassifies apples The data science team presents their work to Cindy Hansen, the management accountant at Blanda, to help them choose between two cutoff prediction probabilities for low quality apples of 0.50 and 0.30. Apples with a predicted probability above the cut-off probability are classified as low quality, and apples below the cut-off probability are classified as acceptable quality apples. The following confusion matrices are based on the validation sample Contusion Matrix 10.30) Confusion Matrix (0.50) Predicted Outcomes Predicted Outcomes Low Acceptable Low Acceptable Quality Quality Quality Quality 130 Low Quality Actual Low Quality 50 Actual Acceptable 230 620 Outcomes Dutcomes 120 Acceptable 730 Quality Quality 1. Cindy estimates that apples of acceptable quality result in protit of $8.30 per apple. She also knows that low quality apples can be sold to juice companies to profit of $0.04. Finally, sheesti mates that the cost to-Blanda telling low-entity apple to the grocery stores an acceptable quality s51n for each low cost angle thinformation to construct payoff matrix 2. Cindy's old but we voll of ach trutcome with thoshold should the team Cho 20 RE 11 Model thresholds and payal matrices con 11-29. Amman Dom 2 to comigos grocery store colo