The tables show a cross-tabulation of frequent-flier mileage categories (high, med, low) by Age-category (younger, older). A travel offer was made to 5000 people in the analytic sample

Table 1 shows the counts of the 5000 people in the analytic sample.

Table 2 shows the counts as a percentage of the 5000 people in the analytic sample

Table 3 shows the number of orders placed for the travel offer.

Table 4 shows the response rate for the travel offer

Create a new table showing indexes of observed response rates, relative to the overall rate. Then based on the index table you created, create 3 segments labeled as follows.Yes (index >= 120), Maybe (index between 100-120), No (index

If the entire customer file is 100,000 customers, how many customers are there in each of the Yes, Maybe, and No categories? What might be the observed response rate for the Yes segment that you want to market to?

Past marketing efforts (before this new segmentation) showed an overall response rate of 5.24%. If new offers are to be sent and targeted to the Yes segment, what is the expected response rate for the Yes segment? And what is the response rate index? How many orders to the travel offer would you expect?

Table 2: Percentage Distribution Table 1: Counts high med low subtotal high med low subtotal younger older subtotal 250 1700 1950 250 1250 1500 550 1000 1550 1050 3950 5000 total younger older subtotal 5.00% 34.00% 39.00% 5.00% 25.00% 30.00% 11.00% 20.00% | 31.00% 21.00% 79.00% 100.00% total Table 3: Number of orders high Table 4: Response Rate med low subtotal high med low subtotal 24 69 93 4.00% 2.80% 3.23% 19 younger older subtotal 28 50 65 185 250 total younger older subtotal 7.60% 5.18% 5.49% 9.60% 5.52% 6.20% 6.19% 4.68% 5.00% total 107