Estimating Max Profit
Combine profit estimate and Lift estimate
If Lift(P) ~ 1/sqrt(P), profit is maximized at
Pmax = 0.25K 2
(here K = TB/C)
For Lift Bounds P -0.4 < Lift(P) < P -0.6
Pmax is in the range:
0.28 K 2.5 > Pmax > 0.22 K 1.67
Previous slide
Next slide
Back to first slide
View graphic version