It is estimated that a customer who leaves costs the firm $2000 in lost profits. Retention program costs are $300. Assuming that everyone predicted to leave can be persuaded to stay, the cost matrix is as depicted below. Predicted Churn = Yes Churn = No Actual Yes No Yes 293 165 Actual If your goal is to minimize the misclassification costs, would you use the full model or the simpler model? Explain why. (Use the test data for scoring and include your calculations to justify the decision). The confusion matrices are reproduced below. Predicted No 266 1386 Churn = Yes Full Model Churn = No 0 Actual $300 $2000 Yes No 0 Yes 220 145 Predicted No 339 1406 Reduced Model

It is estimated that a customer who leaves costs the firm $2000 in lost profits. Retention program costs are $300. Assuming that everyone predicted to leave can be persuaded to stay, the cost matrix is as depicted below. Predicted Churn = Yes Churn = No Actual Yes No Yes 293 165 Actual If your goal is to minimize the misclassification costs, would you use the full model or the simpler model? Explain why. (Use the test data for scoring and include your calculations to justify the decision). The confusion matrices are reproduced below. Predicted No 266 1386 Churn = Yes Full Model Churn = No 0 Actual $300 $2000 Yes No 0 Yes 220 145 Predicted No 339 1406 Reduced Model

Database System Concepts

7th Edition

ISBN:9780078022159

Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan

Chapter1: Introduction

Section: Chapter Questions

Problem 1PE

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