Question: how do i solve this? Watershed is a media services company that provides online streaming movie and television content. As a result of the competitive
how do i solve this? Watershed is a media services company that provides online streaming movie and television content. As a result of the competitive market of streaming service
providers, Watershed is interested in proactively identifying will unsubscribe in the next three months based on the customer's characteristics. For a test set of
customers, the file Watershed contains an indication of whether a customer unsubscribed in the past three months and the classification model's estimated
unsubscribe probability for the customer. In an effort to prevent customer churn, Watershed wishes to offer promotions to customers who may unsubscribe. It
costs Watershed $ to offer a promotion to a customer. If offered a promotion, it successfully persuades a customer to remain a Watershed customer with
probability and the retaining the customer is worth $ to Watershed.
Click on the datafile logo to reference the data.
DATA
file
Assuming customers will be offered the promotion in order of decreasing estimated unsubscribe probability; determine how many customers Watershed should
offer the promotion to maximize the profit of the intervention campaign. Compute the average profit from offering the top customers a promotion as:
Profit Number unsubscribing customers top
unsubscribing customer persuaded remain
unsubscribing customer not persuaded
Number customers who don't intend unsubscribe
The maximum profit of $
occurs when
customers are offered the promotion.
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