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Exercise

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.

Instructions

100 XP
  • Plot the cumulative gains curve. The predictions are in predictions_test and the true target values are in targets_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.