Lab for Statistical Decision TheoryData Explanation: Same as the data used in Practicum 3Problem 1 For the target TAR1,(a) Repeat Practicum 2 with exactly the same options used in the practicum. (b) Write down the profit equation for each decision where p2is the probability for "Tar1=2" and p1is the probability for "Tar1=1'? (Note: probability for TAR1=0=1-p1-p2) (c) Suppose the company can mail all customers without coupon. Create a variable representing the profit of this action. (Note: The revenue for one ordmail is $20 and it cost $0.5 per mail) (d) Suppose the company can mail all customers with coupon. Create a variable representing the profit for this action. (Note: The coupon worth $2 for each customer who responses and the customer suppose to buy 10% more if there is a coupon.) (e) Create a variable representing perfect prediction with coupon. (f) Use variable "CP_tar1_" representing the profit based on the model profit matrix or use ordmail to compute the profit representing the model profit matrix.
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$2, $20, $0.5, Statistical Decision Theory, model profit matrix