ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question

question is partially incorrect but I am not sure how to solve it

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 cost of promotional mail is $3 per customer. The cost of printing and delivering the
magazine is $80 per year. With the promotion a customer pays $120 per year for the magazine. Compute the average misclassification costs using
the confusion matrix below.
Actual Class
C1
C2
C1
20
230
Predicted Class
C2
1017
Round you answers to 3 digits after the decimal point.
Cost of classifying a responder as a non-responder is $ 3
per customer.
Cost of classifying a non-responder as a responder is $ 40
per customer.
The average misclassification cost is $ 0.638
Answer 1:
3
Answer 2:
40
Answer 3:
0.638
expand button
Transcribed Image Text: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 cost of promotional mail is $3 per customer. The cost of printing and delivering the magazine is $80 per year. With the promotion a customer pays $120 per year for the magazine. Compute the average misclassification costs using the confusion matrix below. Actual Class C1 C2 C1 20 230 Predicted Class C2 1017 Round you answers to 3 digits after the decimal point. Cost of classifying a responder as a non-responder is $ 3 per customer. Cost of classifying a non-responder as a responder is $ 40 per customer. The average misclassification cost is $ 0.638 Answer 1: 3 Answer 2: 40 Answer 3: 0.638
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education