Question: Using the information in Exhibits 5 and 6, summarize which customer groups should be targeted with this mailing. Use language that could be understood by
- Using the information in Exhibits 5 and 6, summarize which customer groups should be targeted with this mailing. Use language that could be understood by someone unfamiliar with decision tree analyses.
- Use the information in Exhibit 7 to make a cumulative gains chart for both the training and test samples. Be sure to include a no model line and label your axes.
3. Use the information in Exhibit 7 to make a cumulative lift chart for both the training and test samples. Be sure to include a no model line and label your axes.
4. Based on your charts and assessment of the case material, does the decision tree analysis appear 'overfit'? Why or why not?
5. Estimate what the gross profit (in dollars, and as a % of gross sales) as well as the return on marketing would be if the "The Art History of Florence" offer were only mailed to those predicted by the CHAID tree results to be good prospects (Make sure to use both samples!).
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