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.

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%.

Take Hint (-30 XP)

Exercise

Business case using lift curve

Instructions