Final answer:
In choosing a model for a database marketing campaign, selecting the one with the maximum AUC in a ROC curve or the one that guarantees a profit greater than 0 are both reasonable approaches that align with utility-maximizing principles. The correct answer is option a.
Step-by-step explanation:
When choosing between 77 different models for use in a database marketing campaign, the decision-making approach should maximize the overall utility. This means selecting the model that produces the greatest amount of happiness for the greatest number of people, or in terms of utility theory, the greatest number of interests being satisfied for the greatest number of people. The utility-maximizing choice is essential in this context.
The option model with maximum AUC in a ROC curve can be reasonable assuming that AUC (Area Under the Curve) represents the model's ability to differentiate between various classes effectively, maximizing true positive rates while minimizing false positives. This would likely satisfy a large number of stakeholders' interests by maximizing predictive performance.
That said, selecting a model with profit greater than 0, which aligns with decision approach C, might be the most direct measure of utility in business terms, as profit generation is the ultimate goal of most marketing campaigns. Ultimately, the ideal decision might involve a combination of these approaches to ensure the chosen model is robust, profitable, and maximizes accuracy where it most aligns with business objectives.