Machine Learning for Data Mining

Using propensity scores

Propensity scores are very useful because they tell you the likelihood of something happening. Confidence values for models reflect confidence in our predictions so a high degree of confidence doesn't help us determine if we're going to have a customer that's going to stay or leave a company, instead it indicates the confidence that we have in our prediction. Sometimes it's helpful to modify the confidence value so that a high confidence value means a prediction that a person is going to leave and a low confidence value indicates that a person is going to stay. Basically, we end up creating a propensity to leave score which would be helpful so that we could make interventions, different marketing efforts, and so on. ...