Case analysis Use your optimal model to predict the purchase of “The Art History of Florence”. The prediction should be made on the testing data set. Create and report a Cumulative Gain Chart for...

Use your optimal model to predict the purchase of “The Art History of Florence”. The prediction should be made on
the testing data set.

Create and report a Cumulative Gain Chart for
purchases
using the “create lift chart” operator from RapidMiner.  Explain how many books you may sell if you send offer to 50% of the potential customers.

Create and report a Lift Chart for purchases.  Explain how your model may improve the marketing campaign performance by focusing on the top 30% potential customers. (You may need to do it manually in Excel)

Assume that it costs $1.00 to send an offer to a customer, and that Charles Book Club receives $12.00 for each copy of “The Art History of Florence” purchased. (You may need to do it manually in Excel)

Create and report a cumulative profit chart. Explain how much the profit would be by focusing on the top 30% potential customers.

To maximize the profit, what is the percentage of potential customers should the company send offers to? Explain your reason.

Given that there are 500,000 active customers in the database, how much profit can the publisher receive from this customer base based on your model?