Q. 3. A predictive model is to be used in a campaigning for promoting a product to maximize the profit by identifying the customers who are most likely to respond.Percentage of respondents covered, by addressing various deciles (as given by the model) from the company's customers' database (population) are given in the following table.

Decile

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

Gain

30%

25%

15%

10%

5%

4%

3%

3%

3%

2%

The other details are as given below.

Cost of sending brochure to one person (Rs.)

10

Value if someone responds (Rs.)

100 (without cost adjustment)

Fixed Cost for the campaign (Rs.)

40000

Population Size

10000

Assume an overall response rate of 20%.

(i)Obtain the table for 'profit/loss' versus 'Top deciles of population for target marketing'.

(ii)What percentage of population is to be considered for sending brochures for the maximum profit?