Table 2 Proposed churn modeling example-dependent cost matrix
From: A novel cost-sensitive framework for customer churn predictive modeling
Actual positive | Actual negative | |
|---|---|---|
y i =1 | y i =0 | |
Predicted Positive | \(\phantom {\dot {i}\!}C_{{TP}_{i}}=\gamma _{i}C_{o_{i}}+(1-\gamma _{i})({CLV}_{i}+C_{a})\) | \(\phantom {\dot {i}\!}C_{{FP}_{i}}=C_{o_{i}}+C_{a}\) |
c i =1 | ||
Predicted Negative | \(\phantom {\dot {i}\!}C_{{FN}_{i}}={CLV}_{i}\) | \(\phantom {\dot {i}\!}C_{{TN}_{i}}=0\) |
c i =0 |