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A publisher plans to boost the sales of its most popular magazine by sending out promotional mails. We refer to a customer as a responder if he/she subscribes to the magazine for the next year after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The cost of promotional mail is $3 per customer. The cost of printing and delivering the magazine is $80 per year. With the promotion a customer pays $120 per year for the magazine. Compute the average misclassification costs using the confusion matrix below. Actual Class C1 C2 C1 20 230 Predicted Class C2 3 1017 Round you answers to 3 digits after the decimal point. Cost of classifying a responder as a non-responder is $ 3 per customer. Cost of classifying a non-responder as a responder is $ 40 per customer. The average misclassification cost is $ 0.638

A publisher plans to boost the sales of its most popular magazine by sending out promotional mails. We refer to a customer as a responder if he/she subscribes to the magazine for the next year after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The cost of promotional mail is $3 per customer. The cost of printing and delivering the magazine is $80 per year. With the promotion a customer pays $120 per year for the magazine. Compute the average misclassification costs using the confusion matrix below. Actual Class C1 C2 C1 20 230 Predicted Class C2 3 1017 Round you answers to 3 digits after the decimal point. Cost of classifying a responder as a non-responder is $ 3 per customer. Cost of classifying a non-responder as a responder is $ 40 per customer. The average misclassification cost is $ 0.638

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A publisher plans to boost the sales of its most popular magazine by sending out promotional mails. We refer to a customer as a responder if he/she subscribes to the magazine for the next year after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The cost of promotional mail is $3 per customer. The cost of printing and delivering the magazine is $80 per year. With the promotion a customer pays $120 per year for the magazine. Compute the average misclassification costs using the confusion matrix below. Actual Class C1 C2 C1 20 230 Predicted Class C2 1017 Round you answers to 3 digits after the decimal point. Cost of classifying a responder as a non-responder is $ 3 per customer. Cost of classifying a non-responder as a responder is $ 40 per customer. The average misclassification cost is $ 0.638 Answer 1: 3 Answer 2: 40 Answer 3: 0.638
Transcribed Image Text:A publisher plans to boost the sales of its most popular magazine by sending out promotional mails. We refer to a customer as a responder if he/she subscribes to the magazine for the next year after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The cost of promotional mail is $3 per customer. The cost of printing and delivering the magazine is $80 per year. With the promotion a customer pays $120 per year for the magazine. Compute the average misclassification costs using the confusion matrix below. Actual Class C1 C2 C1 20 230 Predicted Class C2 1017 Round you answers to 3 digits after the decimal point. Cost of classifying a responder as a non-responder is $ 3 per customer. Cost of classifying a non-responder as a responder is $ 40 per customer. The average misclassification cost is $ 0.638 Answer 1: 3 Answer 2: 40 Answer 3: 0.638
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