Question

Mary Jay is a salesperson for a cosmetics company that relies on direct marketing to sell its products. A classification method was developed to predict whether a customer will purchase if contacted with a targeted marketing pitch. This classification method generated output to create following decile-wise lift chart on a test set of 10,000 customers, 400 of whom actually purchased the product when solicited with targeted marketing.

Answer 1

The question deals with direct marketing strategies and the use of a classification method to predict customer purchasing behavior, which falls in the realm of business analysis.

Step-by-step explanation:

The question pertains to a scenario where a classification method is being used to predict customer behavior in the context of direct marketing for cosmetics. This method is evaluated based on its performance on a test set of customers, with the aim to understand how well it can identify those who would make a purchase if approached with a targeted marketing pitch. The scenario touches upon key concepts in business, particularly within the field of marketing analysis and statistics. Classifying potential buyers and analyzing the effectiveness of marketing strategies are common practices in the industry, designed to optimize sales techniques and improve customer targeting. This type of analysis often involves determining metrics such as lift, which measures how much better a model is at predicting outcomes compared to random chance.