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Add-Vert!, an advertising company that offers “complete vertical integration of all data, client detection, and advertising needs”, has trained a logistic regression classifier for a client, which classifies people solely using age.
Each black dot represents a customer. The red line is the classifier. The orange line shows Add-Vert!’s threshold for this classifier. “True Positive” customers are customers interested in the product. “True Negative” customers are those who are not interested in it.
Question 1:
Add-Vert! has set the threshold for this classifier at the orange line. Determine the number of False Positives, True Positives, False Negatives, and True Negatives on the above classified data. Organize these into a classification matrix.
Question 2:
Add-Vert! spends $5 per customer that they classify as a “positive” due to advertising costs aimed at that customer. If the customer is a “true positive”, they earn $15 from that customer on average. If the overall customer base resembled the above data, does it behoove Add-Vert to lower or raise the threshold of their classifier? By how much? Why?
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Examples below of assignment and please provide a positive response on a separate document two or three sentences for each post
Eitan
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