(c) What is the area under the ROC curve on the test set? If required, round your answer to three decimal places. 0.920 To achieve a sensitivity of at least 0.80, how much Class 0 error rate must be tolerated? If required, round your answer to two decimal places. 0.08

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Please solve the second part of C. I have been receiving different answers from different people. Thank you.

Salmons Stores operates a national chain of women's apparel stores. Five thousand copies of an expensive four-color sales
catalog have been printed, and each catalog includes a coupon that provides a $50 discount on purchases of $200 or more.
Salmons would like to send the catalogs only to customers who have the highest probability of using the coupon. The DATAfile
Salmons contains data from an earlier promotional campaign. For each of 1,000 Salmons customers, three variables are
tracked: last year's total spending at Salmons (Spending), whether they have a Salmons store credit card (Card), and
whether they used the promotional coupon they were sent (Coupon).
Apply logistic regression to classify observations as a promotionresponder or not by using Spending and Card as input
variables and Coupon as the output variable. Refer to the Appendix for instructions on how to perform logistic regression
using the Analytic Solver Platform.
In the Parameters tab, Partition Data and Use partition variable named Partition, and perform Feature Selection with
the Best Subsets method. In the Scoring tab, generate a Detailed Report and Lift Charts on the test data.
Click on the datafile logo to reference the data.
DATA file
(a) Evaluate the logistic regression models based on their classification error. Recommend a final model and express the
model as a mathematical equation relating the output variable to the input variables.
If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if
there is a sign before the blank. (Example: -300)
Value =
-8.049
+
0.001
*Spending +
2.947
*Card
Transcribed Image Text:Salmons Stores operates a national chain of women's apparel stores. Five thousand copies of an expensive four-color sales catalog have been printed, and each catalog includes a coupon that provides a $50 discount on purchases of $200 or more. Salmons would like to send the catalogs only to customers who have the highest probability of using the coupon. The DATAfile Salmons contains data from an earlier promotional campaign. For each of 1,000 Salmons customers, three variables are tracked: last year's total spending at Salmons (Spending), whether they have a Salmons store credit card (Card), and whether they used the promotional coupon they were sent (Coupon). Apply logistic regression to classify observations as a promotionresponder or not by using Spending and Card as input variables and Coupon as the output variable. Refer to the Appendix for instructions on how to perform logistic regression using the Analytic Solver Platform. In the Parameters tab, Partition Data and Use partition variable named Partition, and perform Feature Selection with the Best Subsets method. In the Scoring tab, generate a Detailed Report and Lift Charts on the test data. Click on the datafile logo to reference the data. DATA file (a) Evaluate the logistic regression models based on their classification error. Recommend a final model and express the model as a mathematical equation relating the output variable to the input variables. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank. (Example: -300) Value = -8.049 + 0.001 *Spending + 2.947 *Card
(c) What is the area under the ROC curve on the test set?
If required, round your answer to three decimal places.
0.920
To achieve a sensitivity of at least 0.80, how much Class 0 error rate must be tolerated?
If required, round your answer to two decimal places.
0.08
Transcribed Image Text:(c) What is the area under the ROC curve on the test set? If required, round your answer to three decimal places. 0.920 To achieve a sensitivity of at least 0.80, how much Class 0 error rate must be tolerated? If required, round your answer to two decimal places. 0.08
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