Exercise

Business case using lift curve

In the video you learned to implement a method that calculates the profit of a campaign: 

profit = profit(perc_targets, perc_selected, population_size, campaign_cost, campaign_reward)

In this method, perc_targets is the percentage of targets in the group that you select for your campaign, perc_selected the percentage of people that is selected for the campaign, population_size the total population size, campaign_cost the cost of addressing a single person for the campaign, and campaign_reward the reward of addressing a target.

In this exercise you will learn for a specific case whether it is useful to use a model, by comparing the profit that is made when addressing all donors versus the top 40% of the donors.

Instructions

100 XP
  • Plot the lift curve. The predictions are in predictions_test and the true target values are in targets_test.
  • Read the lift value at 40% and fill it out.
  • The information about the campaign is filled out in the script. Calculate the profit made when addressing the entire population.
  • Calculate the profit made when addressing the top 40%.