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Evaluating Predictive Performance ( Business Analytics) Confusion Matrix !!! A publisher plans to boost the sales...

Question

Evaluating Predictive Performance ( Business Analytics) Confusion Matrix !!! A publisher plans to boost the sales...

Evaluating Predictive Performance ( Business Analytics)

Confusion Matrix !!!

1. A publisher plans to boost the sales of its most popular magazine by sending out promotional mails. We refer to a customer as a responder if he/she subscribes to the magazine for the next year after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The publisher has built a model to classify each customer as either a responder or a non-responder. In practice only 1% of the customers are responders, and the remaining 99% are non-responders. In order to build an unbiased model, the publisher employed the oversampling method in creating the training set and the validation set, such that both datasets contain 50% responders and 50% non-responders. Please adjust the following validation confusion matrix for oversampling, then compute accuracy measures using the adjusted confusion matrix. Keep at least three digits after the decimal point.

 Actual Class C1 C2 Predicted Class C1 645 112 C2 255 788

 Oversampling factor of C1: Oversampling factor of C2:

 Actual Class C1 C2 Predicted Class C1 C2

 Overall Accuracy Overall Error Rate False Discovery Rate (FDR) False Omission Rate (FOR) Precision Specificity Sensitivity

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