Business case using cumulative gains curve
The cumulative gains graph can be used to estimate how many donors one should address to make a certain profit. Indeed, the cumulative gains graph shows which percentage of all targets is reached when addressing a certain percentage of the population. If one knows the reward of a campaign, it follows easily how many donors should be targeted to reach a certain profit.
In this exercise, you will calculate how many donors you should address to obtain a 30 000 Euro profit.
This exercise is part of the course
Introduction to Predictive Analytics in Python
Exercise instructions
- Plot the cumulative gains curve. The predictions are in
predictions_testand the true target values are intargets_test. - Assume the cost of a campaign is 0 Euro and the reward of addressing a target is 50 Euro. Fill out how many targets should be reached to make 30 000 Euro profit.
- There are 1000 targets in total. Fill out which percentage of the targets should be addressed.
- Use the cumulative gains curve to know which percentage of the population should be addressed. Round to the tenth.
- Given that the population consists of 10 000 donors, fill out how many donors should be addressed.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Plot the cumulative gains
skplt.metrics.plot_cumulative_gain(____, ____)
plt.show()
# Number of targets you want to reach
number_targets_toreach = ____ / ____
perc_targets_toreach = ____ / ____
cumulative_gains = ____
number_donors_toreach = ____ * ____
print(number_donors_toreach)