(Solved): Watershed is a media services company that provides online streaming movie and television content. ...

Watershed is a media services company that provides online streaming movie and television content. As a result of the competitive market of streaming service providers, Watershed is interested in proactively identifying will unsubscribe in the next three months based on the customer's characteristics. For a test sat of customers, the fle Watershed contains an Indication of whether a customer unsubscribed in the past three months and the ciassification model's estimated. unsubscribe probabllity for the customer. In an effort to prevent customer churn, Watershed wishes to offer promotions to customers who may unsubseribe. It costs Watershed \( \$ 10 \) to offer a promotion to a customer. If offered a promotion, it successfully persuades a customer to remain a Watershed customer with probability \( 0.6 \), and the retaining the customer is worth \( \$ 60 \) to Watershed. click on the datanile logo to reference the data. DATA Assuming customers wii be offered the promotion in order of decreasing estimated unsubscribe probability; determine how many customers Watershed should offer the promotion to maximize the profit of the intervention campaign. Compute the average profit from offering the top \( n \) customers a promotion as: Profit = Number of unsubscribing customers in top \( n \) \( \times \) (P(unsubseribing customer persuaded to remain) \( \times(60-10) \) \( + \) P(unsubscribing customer is not persuaded \( ) \times(0-10)) \) \( + \) Number of customers whe dont intend to uneubscribe \( \times(0-10) \) The maximum profit of \( \$ \) (3) occurs when