What is the most appropriate visual to reinforce this statement?

You have created a Logistic Regression model to predict customer churn for your company. The company’s Marketing department wants to use your model to identify at-risk customers and offer incentives to keep them from leaving.

Using two different thresholds for the model provides the two confusion matrices shown in the graphic. Marketing understands the relative costs of missing at-risk customers versus offering incentives to customers who are not at risk. Therefore, you need their advice on how to set the appropriate threshold on the churn model.

You are meeting with the Marketing team. In the meeting, you plan to state: “Raising the threshold from 0.5 to 0.75 reduces the number of unnecessary incentives that can be offered, at the cost of missing more of the customers who churned.”

What is the most appropriate visual to reinforce this statement?

A)

B)

C)

D)

A . Option A
B . Option B
C . Option C
D . Option D

View Answer

Answer: B