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Requirement 2. A team of management accountants at Lunar TV estimates the payoffs from their actions. For every customer it targets, Lunar TV will spend
Requirement 2. A team of management accountants at Lunar TV estimates the payoffs from their actions. For every customer it targets, Lunar TV will spend $20 to market to that customer. For every smart TV it sells, Lunar TV makes a profit of $200 after taking into account the $20 it spends on that customer. Construct the payoff matrix and determine which cut off value Lunar TV should use. Start by constructing the payroll matrix. (Complete all answer boxes. Enter a 0 for any zero balances. Enter a spend or loss amount with a minus sign or parentheses.) Payoff Matrix Predicted Outcomes Buyers Non-Buyers Actual Buyers Outcomes Non-BuyersLunar TV sells TV sets. It does not sell smart TVs so customers do not come to Lunar TV if they want to purchase smart TVs. i (Click the icon to view the additional information.) To choose a cutoff probability, the team develops the confusion matrices below for two cutoff probabilities on a validation sample of 600 households comprising 180 buyers and 420 non-buyers of smart TVs. (Click the icon to view the confusion matrices.) Read the requirements. - . . Requirement 1. Complete the confusion matrices for the validation set. Start by constructing a confusion matrix for the cutoff point 0.70. Confusion Matrix (0.70) Predicted Outcomes Buyers Non-Buyers Total Actual Buyers 18 162 180 Outcomes Non-Buyers 174 246 420 Total 192 408 600 Construct a confusion matrix for the cutoff point 0.30. Confusion Matrix (0.30) Predicted Outcomes Buyers Non-Buyers Total Actual Buyers 144 36 180 Outcomes Non-Buyers 306 114 420 Total 450 150 600
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