Question: The target variable is coded 1 for Churn and 0 for Non-Churner . The results of using the model on the testing data (past data
The target variable is coded 1 for Churn and 0 for Non-Churner.
The results of using the model on the testing data (past data that was used for testing the model) is shown below.
The observations in this data are active customers. Due to the misclassification, how much the marketing department is likely to waste on giving active customers discount in order to keep them?
On average, the marketing depart spend $10 per customer to keep those who are about to switch to other provider to stay with the firm.
|
| Predicted | ||
| 0 | 1 | ||
| Actual | 0 | 1000 | 20 |
| 1 | 60 | 800 | |
Group of answer choices
1000 x $10
60 x $10
800 x $10
20 x $10
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