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Response the data mining model

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Reference no: EM133218718

A university has extensive dataset on its alumni, including past studies, demographic information by zip code, and past donations. The university is planning to send a deluxe brochure and a donation request to some of the alumni (Total targeting cost is $15 per alum) and has sufficient budget for constructing targeting models and running experiments under the following assumptions:

Donation amount may vary.

Alumni may spontaneously make a donation (even when not targeted).

Targeting cost is fixed (C= $15).

Other than the targeting cost, there are no additional costs for alumni who are targeted and decide not to donate.

Identify and build into a response the data mining model(s) that would suggest which alumni should be targeted. How might the expected value framework aid in determining which models should be used?

Reference no: EM133218718

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