Please see the numbers in the questions carefully and solve a to d.

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, without any use of predictive modeling to target sales efforts, what is the estimated profit? b. If the firm wants the average profit on each sale to roughly double the sales effort cost, and applies an appropriate cutoff 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 cutoff of $2500, how far should it proceed down the ranked leads, in terms of deciles? d. Why use this two-stage process for predicting sales-why not simply develop a model for predicting profit for the 1000 new leads? (a) Cumulative Gains Chart (b) Decile Lift Chart 500,000 2.00 400,000 1.75 1.50 -company applies this predictive model with a lower cutoff of $2500, how far should it proceed down the ranked leads, in terms of deciles? d. Why use this two-stage process for predicting sales-why not simply develop a model for predicting profit for the 1000 new leads? (a) Cumulative Gains Chart (b) Decile Lift Chart 500,000 2.00 400,000 1.75 1.50 300,000- 1.25 Cumulative gains Lift 1.00 - 200,000 - 0.75 100,000 0.50 0.25- 0.00 50 100 150 200 2 2 2 9 2 8 2 8 8 100 No. of cases Percentile6. A rm that sells software senrices has been piloting a new product and has records of 5oo customers who have either bought the services or decided not to. The target value is the estimated prot from each sale [excluding sales costs]. The global mean is about $25oo. However, the cost of the sales effort is not cheapthe company gures it comes to $25oo for each of the 5oo customers (whether they buyr or not}. The rm developed a predictive model in hopes of being able to 194 identify the top spenders m the future The cumulative gains and decile lift charts for the validation set are shown m F_'igu_e 543 a. If the company begins working with a new set of rooo leads to sell the same services, similar to the 500 1n the