1. You are asked to help your manager further. All your work for this problem will be done using validation dataset scores tab. Use the validation dataset; consider the predicted probability of success (or, PostProb: 1) column (success means 1) and sort the validation dataset on predicted probability of success from the highest to the lowest. After doing this, please do the following: (12)
   1. For each case, list the net profit as either 100 or -500 based on actual value of target variable (100 if actual value of the target variable is 1; otherwise -500). <> (3)
   2. Add another column for cumulative net profit. Calculate cumulative net profit based on values in part a. <>(3)
   3. There are 400 cases in validation dataset. Every chunk of 40 cases now become a decile. Mark the first five deciles (simply highlight each of the five rows representing the end of a decile in yellow). <> (3)
   4. How far into the validation data should you go to get the maximum net profit? Report in terms of the number of deciles. Is it decile 1, or decile 2, or decile 3, or decile 4, or decile 5. Report your answer below in red and explain your rationale. (note: it may be possible that the maximum net profit may not coincide with the last row of the decile. Its ok. Just report the decile in which you find the maximum net profit). (3)

Answer the following in red font:

The maximum net profit is $_________

It is found in the decile #____________

Rationale (explain how did you find this value?): _______________________