Question
Watershed is a media services company that provides online streaming movie and television content. As a result of the competitive market of streaming service
Watershed is a media services company that provides online streaming movie and television content. As a result of the competitive market of streaming service providers, Watershed is interested in proactively 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 classification 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 $10 to offer a promotion to a customer. If offered a promotion, it successfully persuades a customer to remain a Watershed customer with probability 0.7, and the retaining the customer is worth $65 to Watershed. Click on the datafile logo to reference the data. DATA file Assuming customers will be offered the promotion in order of decreasing estimated unsubscribe probability; determine how many customers Watershed should offer the promotion to maximize the profit of the intervention campaign. Compute the average profit from offering the top n customers a promotion as: Profit = Number of unsubscribing customers in top n (P(unsubscribing customer persuaded to remain) (65 - 10) + P(unsubscribing customer is not persuaded) x (0-10)) + Number of customers who don't intend to unsubscribe x (0-10) The maximum profit of $ occurs when customers are offered the promotion. Customer Unsubscribe? Probability of Unsubscribe 57 0 0.99 111 0 0.99 141 1 0.99 158 0 0.99 180 1 0.99 119 1 0.98 140 1 0.98 191 1 0.98 31 0 0.97 33 0 0.97 58 0 0.97 71 1 0.97 121 1 0.97 96 96 1 0.95 131 0 0.95 197 0 0.95 7 0 0.93 26 1 0.93 116 1 0.93 15 0 0.92 56 1 0.92 130 0 0.92 149 0 0.92 178 0 0.92 26 27 28 29 30 148 31 172 169642 44 0 0.91 1 0.91 0 0.90 76 0 0.89 0 0.89 0 0.89 32 33 23 5 0 0.88 11 1 0.88 34 91 0 0.88 35 133 0 0.88 36 37 6 7 147 0 0.88 54 1 0.87 38 194 0 0.87 39 18 0 0.86 40 120 1 0.85 41 150 0 0.85 42 64 1 0.84 43 69 0 0.84 44 139 1 0.84 45 1 0 0.83 46 127 1 0.83 47 157 0.83 48 177 0 0.83 49 145 0 0.82 50 94 1 0.81 51 87 1 0.80 52 124 1 0.80 53 100 0 0.79 54 104 0 0.79 55 129 0 0.79 56 152 1 0.79 57 184 0 0.79 58 78 0 0.78 59 199 1 0.78 60 105 0 0.77 61 108 0 0.76 62 93 0 0.74 63 161 1 0.74 64 144 0 0.73 65 75 0 0.71 66 84 0 0.71 67 19 1 0.70 68 135 1 0.70 69 200 0 0.70 70 14 0 0.69 71 167 0 0.69 72 99 0 0.68 73 151 0 0.68 74 195 0 0.68 75 51 0 0.67 76 67 1 0.67 77 49 1 0.65 78 23 0 0.64 79 61 1 0.63 80 36 0 0.62 81 183 1 0.62 82 160 1 0.61 83 110 0 0.60 84 159 0 0.60 85 198 0 0.60 86 102 1 0.58 87 25 0 0.57 88 55 0 0.57 89 70 0 0.57 90 163 0 0.57 91 12 0 0.56 92 176 0 0.56 93 187 0 0.56 94 28 0 0.54 95 34 0 0.54 96 98 0 0.54 97 138 0 0.54 98 27 0 0.52 99 3 0 0.51 100 85 0 0.51 101 128 0 0.51 102 103 0 0.50 103 63 0 0.49 104 68 0 0.49 105 115 0 0.49 106 155 0 0.48 107 113 0 0.47 108 60 0 0.46 109 171 0 0.46 110 37 1 0.45 111 17 0 0.44 112 101 0 0.44 113 80 0 0.43 114 132 0 0.43 115 134 0 0.43 116 142 0 0.43 117 29 1 0.42 118 107 1 0.42 119 8 0.41 120 189 0 0.40 121 32 0 0.39 122 73 0 0.39 123 35 1 0.38 124 52 0 0.38 125 114 0 0.38 126 125 0 0.38 127 186 0 0.38 128 6 0 0.37 129 74 0 0.37 130 95 0 0.37 131 185 0 0.37 132 16 0 0.36 133 20 0 0.36 134 136 0 0.36 135 192 0 0.36 136 10 0 0.35 137 143 0 0.33 138 156 0 0.33 139 181 0 0.33 140 45 0 0.29 141 62 0 0.29 142 86 0 0.29 143 170 0 0.29 144 46 0 0.28 145 168 0 0.27 146 196 0 0.27 147 59 0.26 148 106 0 0.26 149 179 0.26 150 175 0 0.25 151 88 0.24 152 47 0 0.23 153 48 0.23 154 4 0 0.21 155 50 0.21 156 13 0 0.20 157 41 0.19 158 79 0 0.17 159 89 0.17 160 123 0 0.17 161 162 1 0.17 162 30 0 0.16 163 117 0.16 164 24 0 0.15 165 65 0.15 166 137 0 0.15 167 173 0.15 168 39 0 0.14 169 82 0.14 170 165 0 0.14 171 172 22 21 0 0.13 90 0 0.13 173 166 0 0.13 174 118 0 0.12 175 193 0 0.12 176 126 0 0.11 177 154 0 0.11 178 146 0 0.10 179 190 0 0.10 180 2 1 0.09 181 53 0 0.08 182 81 0 0.08 183 22 0 0.07 184 109 0 0.07 185 153 0 0.07 186 182 0 0.07 187 40 0 0.06 188 42 0 0.06 189 43 0 0.06 190 164 0 0.06 191 77 0 0.05 192 174 0 0.05 193 38 0 0.04 194 92 0 0.04 195 188 0 0.04 196 97 0 0.03 197 122 0 0.03 198 72 0 0.02 199 83 0 0.02 200 112 0 0.01 201 169 0 0.01
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