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Focus on growth

For your marketing campaign, you have decided to focus on growing your non-profit's donor base, instead of on pure profitability. The data scientists have modeled prospective donor response rates and plotted curves to help inform your decision. The non-profit has a $1000 fixed cost and each marketing letter costs $3. On average each donor gift results in $25 profit.

Given these profit, response, ROI and Cost/Revenue curves, what is the maximum percentile, representing the number of people as a percentage, to reach out that still yields more than $100 profit? How many successful responses does the model predict?

This exercise is part of the course

Data-Driven Decision Making for Business

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