Calculate Profit based on cost:margin ratio

Calculate Profit based on cost:margin ratio

profit(pred, rvar, lev, cost = 1, margin = 2)

Arguments

pred	Prediction or predictor
rvar	Response variable
lev	The level in the response variable defined as success
cost	Cost per treatment (e.g., mailing costs)
margin	Margin, or benefit, per 'success' (e.g., customer purchase). A cost:margin ratio of 1:2 implies the cost of False Positive are equivalent to the benefits of a True Positive

Value

profit

Examples

profit(runif(20000), dvd$buy, "yes", cost = 1, margin = 2)
#> [1] -4781
profit(ifelse(dvd$buy == "yes", 1, 0), dvd$buy, "yes", cost = 1, margin = 20)
#> [1] 99674
profit(ifelse(dvd$buy == "yes", 1, 0), dvd$buy)
#> [1] 5246