To predict if a customer is likely to churn you use a model of type
To predict if a customer is likely to churn, you use a model of type decision tree. A decision tree is a type of predictive model that uses a set of rules to classify customers into different categories based on their attributes and behavior. A decision tree can predict a binary outcome (such as churn or not churn) or a multi-class outcome (such as low risk, medium risk, or high risk). Reference: https://academy.pega.com/module/predictive-analytics/topic/using-decision-tree-models
What are the most important aspects taken into consideration when determining the Next-Best-Action?
The most important aspects taken into consideration when determining the Next-Best-Action are business objectives and customer needs. Business objectives reflect the goals and priorities of the organization, such as increasing revenue, reducing costs, or managing risk. Customer needs reflect the preferences and expectations of the customers, such as their interests, intents, or life events. Reference: https://academy.pega.com/module/one-one-customer-engagement/topic/next-best-action-designer
What is the key component of a Next-Best-Action strategy?
The key component of a Next-Best-Action strategy is a strategy, which is a graphical representation of the business logic that determines which actions to offer to each customer and in what order. A strategy can use various components, such as business rules, predictive models, filters, prioritizers, etc., to achieve this goal. Reference: https://academy.pega.com/module/one-one-customer-engagement/topic/next-best-action-designer
To enable an assessment of its reliability, the Adaptive Model produces three outputs: Propensity, Performance and Evidence. The performance of an Adaptive Model that has not collected any evidence is_________.
When an adaptive model has not collected any evidence, its performance is 0.5, which means that it has no predictive power and is equivalent to a random guess. As more evidence is collected, the performance can increase or decrease depending on how well the model predicts customer behavior. Reference: https://academy.pega.com/module/predicting-customer-behavior-using-real-time-data-archived/topic/adaptive-models-overview
A very important aspect of each model is how good a model or a given predictor is in predicting the required behavior. When building a predictive model, the use of testing and validation samples___________________
A predictive model is a mathematical function that estimates the probability of an outcome based on input data.When building a predictive model, the use of testing and validation samplesincreases the accuracy of models123. Testing and validation samples are subsets of data that are used to evaluate how well a model performs on new data that was not used to train the model. Testing and validation samples help prevent overfitting, which is when a model learns too much from the training data and fails to generalize to new data.
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