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Watershed is a media services companvI that provides online streaming movie and television content. As a result of the competitive market of streaming service providers,
Watershed is a media services companvI that provides online streaming movie and television content. As a result of the competitive market of streaming service providers, Watershed is interested in proactiver identifying will unsubscribe in the next three months based on the customer's characteristics. For a test set of customers, the file Watershed contains an indication of whether a customer unsubscribed in the past three months and the classication model's estimated unsubscribe probability for the customer. In an effort to prevent customer churn, Watershed wishes to offer promotions to customers who may unsubscribe. It costs Watershed $15 to offer a promotion to a customer. If offered a promotion, it successfully persuades a customer to remain a Watershed customer with probability 0.3, and the retaining the customer is worth $55 to Watershed. Click on the datafile logo to reference the data. DATA l'file Assuming customers will be offered the promotion in order of decreasing estimated unsubscribe probability: determine how mam)I customers Watershed should offer the promotion to maximize the prot of the intervention campaign. Compute the average prot from offering the top on customers a promotion as: Prot = Number of unsubscribing customers in top n x (Pfunsubscribing customer persuaded to remain) x (55 - 15) + P(unsubscribing customer is not persuaded) x [E] - 15)) + Number of customers who don't intend to unsubscribe x (D - 15) The maximum profit of :5 occurs when customers are offered the promotion
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