In this project, I will analyze a business problem in the mail-order catalog business. I have to predict how much money the company can expect to earn from sending out a catalog to new customers. This task will involve building the predictive model and applying the results to provide a recommendation to management.
You recently started working for a company that manufactures and sells high-end home goods. Last year the company sent out its first print catalog, and is preparing to send out this year's catalog in the coming months. The company has 250 new customers from their mailing list that they want to send the catalog to.
Your manager has been asked to determine how much profit the company can expect from sending a catalog to these customers. You, the business analyst, are assigned to help your manager run the numbers. While fairly knowledgeable about data analysis, your manager is not very familiar with predictive models.
You’ve been asked to predict the expected profit from these 250 new customers. Management does not want to send the catalog out to these new customers unless the expected profit contribution exceeds $10,000.
The costs of printing and distributing is $6.50 per catalog. The average gross margin (price - cost) on all products sold through the catalog is 50%.
please refer to this link for the solution https://github.com/gmalekar/PredictingCatalogDemand/blob/master/Predicting%20Catalog%20Demand.pdf