Question: A firm that sells software services has been piloting a new product and records 500 customers who have either bought the services or decided not
A firm that sells software services has been piloting a new product and records 500 customers who have either bought the services or decided not to. The target value is the estimated profit from each sale (excluding sales costs). The global mean is about $2500. However, the cost of the sales effort is not cheapthe company figures it comes to $2500 for each of the 500 customers (whether they buy or not). The firm developed a predictive model in hopes of being able to identify the top spenders in the future. The lift and decile charts for the validation set are shown below:
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