roi: Calculate Return on investment (ROI)

In modelimpact: Functions to Assess the Business Impact of Churn Prediction Models

Description

Calculates ROI after sorting observations with ROI defined as (Current Value - Start Value) / Start Value

Usage

roi(x, fixed_cost = 0, var_cost = 0, tp_val = 0, prob_col = NA, truth_col = NA)

Arguments

x	A data frame containing predicted probabilities of a target event and the actual outcome/class.
fixed_cost	Fixed cost (e.g. of a campaign)
var_cost	Variable cost (e.g. discount offered)
tp_val	The average value of a True Positive
prob_col	The unquoted name of the column with probabilities of the event of interest.
truth_col	The unquoted name of the column with the actual outcome/class. Possible values are 'Yes' and 'No'.

Value

A data frame with the following columns:

row = row numbers
pct = percentiles
cum_rev = cumulated revenue
cost_sum = cumulated costs
roi = return on investment

Examples

roi(predictions,
   fixed_cost = 1000,
   var_cost   = 100,
   tp_val     = 2000,
   prob_col   = Yes,
   truth_col  = Churn)

modelimpact documentation built on May 6, 2021, 9:06 a.m.