Construct the adjusted cost matrix

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Reference no: EM131380510

Suppose that our client is a retailer seeking to maximize revenue from a direct marketing mailing of coupons to likely customers for an upcoming sale. A positive response represents a customer who will shop the sale and spend money. A negative response represents a customer who will not shop the sale and spend money. Suppose that mailing a coupon to a customer costs $5, and that previous experience suggests that those who shopped similar sales spent an average of $100.

Use Result 1 to construct the adjusted cost matrix. Interpret the adjusted costs.

Reference no: EM131380510

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