Assume there are 3,600 cases in the validation dataset, and 12% of these cases have a value of 1 for churn (the primary/positive event). Questions a) to c) are based on data for the 3,600 cases (see table below). Depth (% Contacted) Model Cumulative Gain Cumulative Lift Decision Tree 34.42 6.84 Logistic Regression Neural Network Decision Tree Logistic Regression Neural Network Decision Tree Logistic Regression Neural Network Decision Tree Logistic Regression Neural Network 5 20.19 4.01 34.62 6.88 10 64.90 6.06 10 36.06 3.15 10 62.50 5.54 15 73.96 1.82 15 49.04 2.62 15 82.21 3.97 20 78.39 0.87 20 59.13 2.01 20 86.54 0.86 a) Which model has the highest Cumulative Lift at a depth of 20%? What is the lift?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Assume there are 3,600 cases in the validation dataset, and 12% of these cases have a value of 1 for
churn (the primary/positive event). Questions a) to c) are based on data for the 3,600 cases (see
table below).
Depth
(% Contacted)
Model
Cumulative Gain
Cumulative Lift
Decision Tree
34.42
6.84
Logistic Regression
Neural Network
20.19
4.01
34.62
6.88
Decision Tree
Logistic Regression
Neural Network
10
64.90
6.06
10
36.06
3.15
10
62.50
5.54
Decision Tree
15
73.96
1.82
Logistic Regression
Neural Network
15
49.04
2.62
15
82.21
3.97
Decision Tree
Logistic Regression
20
78.39
0.87
20
59.13
2.01
Neural Network
20
86.54
0.86
a) Which model has the highest Cumulative Lift at a depth of 20%? What is the lift?
b) If the Cumulative Gain at a depth of 10% for the Decision Tree is converted to number of
primary/positive event cases, what will be the number of cases? Show your calculation.
c) If the Cumulative Gain at a depth of 15% for the Neural Network model is converted to number
of primary/positive event cases, what will be the number of cases? Show your calculation.
Transcribed Image Text:Assume there are 3,600 cases in the validation dataset, and 12% of these cases have a value of 1 for churn (the primary/positive event). Questions a) to c) are based on data for the 3,600 cases (see table below). Depth (% Contacted) Model Cumulative Gain Cumulative Lift Decision Tree 34.42 6.84 Logistic Regression Neural Network 20.19 4.01 34.62 6.88 Decision Tree Logistic Regression Neural Network 10 64.90 6.06 10 36.06 3.15 10 62.50 5.54 Decision Tree 15 73.96 1.82 Logistic Regression Neural Network 15 49.04 2.62 15 82.21 3.97 Decision Tree Logistic Regression 20 78.39 0.87 20 59.13 2.01 Neural Network 20 86.54 0.86 a) Which model has the highest Cumulative Lift at a depth of 20%? What is the lift? b) If the Cumulative Gain at a depth of 10% for the Decision Tree is converted to number of primary/positive event cases, what will be the number of cases? Show your calculation. c) If the Cumulative Gain at a depth of 15% for the Neural Network model is converted to number of primary/positive event cases, what will be the number of cases? Show your calculation.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Database management system (DBMS)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education