DataScience Classroomnotes 01/Apr/2022

Exploring Binary and Categorical Data

  • Key terms
    Preview
  • Expected Value:
    • A marketer for new cloud technology offers two levels of service
      • one priced at $300/month
      • other is prices ad $50/month
    • The marketer offers free webinars to generate leads and the firm figures that 5% of attends will sign up for $300 service and 15% will sign up for $50 service and 80% will not signup anything.
    • The expected value is calulate as follows
      • Multiply each outcome by its probability of occurence
      • sum these values
    • EV = (0.05 * 300) + (0.15 * 50) + 0.8 * 0 = 15 + 7.5 = 22.5
    • The expected value is 22.5$

Correlation

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