Unformatted text preview: screen shot of your final Diagram as shown on p.136, and (iii) screen shots of various analysis steps as listed below. Screen Shots: 1. A variable importance plot, as shown on p. 126 (top-left corner plot only) 2. An ROC chart that includes the four models, plus the baseline, as shown on p. 137 3. A cumulative Lift chart for the four models, as shown on p. 137 4. A profit chart for the four models, as shown on p. 139. Expand the plot to make all the details visible, as shown on p. 139. Include both Training and Validation charts. Questions: 1. Interpret the ROC charts shown on screen #2. Define the ROC Index. Which model appears to have the largest ROC index? How do you visually identify such a model by looking at the ROC charts? Hint: read p. 137. 2. Refer to screen #4. How many bins should we target so that marginal profit (=profit per customer) is maximized? Is this always a good marketing strategy? Why, or why not?...
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- Spring '08
- Artificial neural network, neural network, Logistic function, largest ROC index