Star TV sells TV sets. It does not sell smart TVs so customers do not come...

    

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Star TV sells TV sets. It does not sell smart TVs so customers do not come to Star TV if they want to purchase smart TVs. (Click the icon to view the additional information.) To choose a cutoff probability, the team develops the confusion matrices below for two cutoff probabilities on a validation sample of 800 households comprising 240 buyers and 560 non-buyers of smart TVs. (Click the icon to view the confusion matrices.) Read the requirements. Data table Confusion Matrix (0.70) Predicted Outcomes Buyers Actual Buyers 72 Outcomes Non-Buyers Total 264 Non-Buyers Total 240 560 800 Confusion Matrix (0.30) Predicted Outcomes Buyers Non-Buyers Total Actual Buyers 192 240 Outcomes Non-Buyers 560 Total 600 800 Requirements 1. Complete the confusion matrices for the validation set. 2. A team of management accountants at Star TV estimates the payoffs from their actions. For every customer it targets, Star TV will spend $40 to market to that customer. For every smart TV it sells, Star TV makes a profit of $220 after taking into account the $40 it spends on that customer. Construct the payoff matrix and determine which cut off value Star TV should use. 3. Are there any other factors Star TV should consider before building such a model? Star TV sells TV sets. It does not sell smart TVs so customers do not come to Star TV if they want to purchase smart TVs. (Click the icon to view the additional information.) To choose a cutoff probability, the team develops the confusion matrices below for two cutoff probabilities on a validation sample of 800 households comprising 240 buyers and 560 non-buyers of smart TVs. (Click the icon to view the confusion matrices.) Read the requirements. Data table Confusion Matrix (0.70) Predicted Outcomes Buyers Actual Buyers 72 Outcomes Non-Buyers Total 264 Non-Buyers Total 240 560 800 Confusion Matrix (0.30) Predicted Outcomes Buyers Non-Buyers Total Actual Buyers 192 240 Outcomes Non-Buyers 560 Total 600 800 Requirements 1. Complete the confusion matrices for the validation set. 2. A team of management accountants at Star TV estimates the payoffs from their actions. For every customer it targets, Star TV will spend $40 to market to that customer. For every smart TV it sells, Star TV makes a profit of $220 after taking into account the $40 it spends on that customer. Construct the payoff matrix and determine which cut off value Star TV should use. 3. Are there any other factors Star TV should consider before building such a model?