Question

1. A publisher plans to boost the sales of its most popular magazine by sending out promotional mails. We refer to a customer as a responder if he/she subscribes to the magazine for the next year after receiving a promotional mail. Otherwise the customer is referred to as a non-responder. Denote responder by C1 and non-responder by C2. The publisher has built a model to classify each customer as either a responder or a non-responder. In practice only 1% of the customers are responders, and the remaining 99% are non-responders. In order to build an unbiased model, the publisher employed the oversampling method in creating the training set and the validation set, such that both datasets contain 50% responders and 50% non-responders. Please adjust the following validation confusion matrix for oversampling, then compute accuracy measures using the adjusted confusion matrix. Keep at least three digits after the decimal point.

Answer 1