Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have just begun working for a baby products company called BabiesRWe (in no way related to another company by a similar name). The company

You have just begun working for a baby products company called BabiesRWe (in no way related to another company by a similar name). The company has a database of 1 million existing customers that are registered with an account on their website.

Just prior to your arrival, the company sent an advertisement via email to a random sample of its existing customers for a premium bottle warmer. Now, the company wants to send out another advertisement to another sample of existing customers for the same product. However, instead of choosing randomly, they want to target the customers most likely to respond based on the results of the first round of advertisements. You have been given a data set by your manager (baby_data.csv) with the goal of creating a classification model to send targeted ads.

Target variable:

  • purchased: whether the customer used the discount offer

Attributes:

  • repeat_customer: whether the customer has previously purchased a product from BabiesRWe 
  • total_spent: the total amount of money the customer has spent on BabiesRWe products
  • children: how many children the customer has
  • adults: how many adults live in the customer's household

You also have the following information about the product and advertisement:

  • Bottle warmer price: $40
  • Bottle warmer cost: $10
  • Advertisement cost: $0.50

 What would the cost/benefit matrix be?

Step by Step Solution

3.49 Rating (166 Votes )

There are 3 Steps involved in it

Step: 1

To create a costbenefit matrix we need to define the following terms True Positive TP When the model ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Horngren, Harrison, Oliver

3rd Edition

978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978

More Books

Students also viewed these Accounting questions

Question

Define the term bottleneck as it applies to data entry.

Answered: 1 week ago

Question

Explain the process of MBO

Answered: 1 week ago

Question

Show that if A is any m n matrix, then Im A = A and AIn = A.

Answered: 1 week ago