Question

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The following picture is taken from a “Gains Chart” derived from a holdout sample in a Discriminant Analysis Regression Model. Which of the following statements is not a correct conclusion from the picture?

a. 2% of all dollars spent can be found among the predicted “top 1% of customers”

b. 2% of all dollars spent can be found among the actual “top 1% of customers”

c. The “Average Amount Spent” for the “Percentile” – 0.4% is $3,933, which is an error

d. From this picture you cannot calculate the total amount spent

Answer 1

B & C are not correct

b. 2% of all dollars spent can be found among the actual “top 1% of customers”

c. The “Average Amount Spent” for the “Percentile” – 0.4% is $3,933, which is an error