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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 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.

Data:

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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) (0 - 10))
+ Number of customers who don't intend to unsubscribe (0 - 10)

The maximum profit of $ occurs when customers are offered the promotion.

Customer Unsubscribe? Probability of Unsubscribe \begin{tabular}{|r|r|r|} \hline 57 & 0 & 0.99 \\ \hline 111 & 0 & 0.99 \\ \hline 141 & 1 & 0.99 \\ \hline 158 & 0 & 0.99 \\ \hline 180 & 1 & 0.99 \\ \hline 119 & 1 & 0.98 \\ \hline 140 & 1 & 0.98 \\ \hline 191 & 1 & 0.98 \\ \hline 31 & 0 & 0.97 \\ \hline 33 & 0 & 0.97 \\ \hline 58 & 0 & 0.97 \\ \hline 71 & 1 & 0.97 \\ \hline 121 & 1 & 0.97 \\ \hline 96 & 1 & 0.95 \\ \hline 131 & 0 & 0.95 \\ \hline 197 & 0 & 0.95 \\ \hline 7 & 0 & 0.93 \\ \hline 26 & 1 & 0.93 \\ \hline 116 & 1 & 0.93 \\ \hline 15 & 0 & 0.92 \\ \hline 56 & 1 & 0.92 \\ \hline 130 & 0 & 0.92 \\ \hline 149 & 0 & 0.92 \\ \hline 178 & 0 & 0.92 \\ \hline 44 & 0 & 0.91 \\ \hline 66 & 1 & 0.91 \\ \hline 96 & 0 & 0.90 \\ \hline 11 & 0 & 0.89 \\ \hline 5 & 0 & 0.89 \\ \hline 14 & 0.89 \\ \hline 15 & 0.88 \\ \hline 15 & 0.88 \\ \hline \end{tabular} \begin{tabular}{r|r|r|} 91 & 0 & 0.88 \\ \hline 133 & 0 & 0.88 \\ \hline 147 & 0 & 0.88 \\ \hline 54 & 1 & 0.87 \\ \hline 194 & 0 & 0.87 \\ \hline 18 & 0 & 0.86 \\ \hline 120 & 1 & 0.85 \\ \hline 150 & 0 & 0.85 \\ \hline 64 & 1 & 0.84 \\ \hline 69 & 0 & 0.84 \\ \hline 139 & 1 & 0.84 \\ \hline 1 & 0 & 0.83 \\ \hline 127 & 1 & 0.83 \\ \hline 157 & 0 & 0.83 \\ \hline 177 & 0 & 0.83 \\ \hline 145 & 0 & 0.82 \\ \hline 94 & 1 & 0.81 \\ \hline 87 & 1 & 0.80 \\ \hline 124 & 1 & 0.80 \\ \hline 100 & 0 & 0.79 \\ \hline 104 & 0 & 0.79 \\ \hline 129 & 0 & 0.79 \\ \hline 152 & 1 & 0.79 \\ \hline 184 & 0 & 0.79 \\ \hline 78 & 0 & 0.78 \\ \hline 199 & 0 & 0.78 \\ \hline 105 & 0 & 0.77 \\ \hline 108 & 0 & 0.76 \\ \hline 93 & 0 & 0.74 \\ \hline 144 & 0 & 0.74 \\ \hline 84 & 0 & 0.73 \\ \hline 1 & 0 & 0.71 \\ \hline 15 & 0.71 \\ \hline \end{tabular}

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