What is a gain chart?

Gain is the ratio between the cumulative number of positive observations up to a decile to the total number of positive observations in the data. The gain chart is a chart drawn between the gain on the vertical axis and the decile on the horizontal axis.

What is cumulative gains chart?

Cumulative gains chart. The cumulative gains chart shows the percentage of the overall number of cases in a given category “gained” by targeting a percentage of the total number of cases.

What is gain chart and lift chart?

A gain and lift chart is a visual way to evaluate different the effectiveness of different models. As well as helping you to evaluate how good your predictive model might be, it can also show visually how the response rate of a targeted group might differ from that of a randomly selected group.

How do you calculate cumulative gain?

1. Calculate P(x) for each person x.
2. Order the people according to rank P(x) Customer Name. P(x) Actual Response.
3. Calculate the percentage of total responses for each cutoff point. Response Rate = Number of Responses / Total Number of Responses (10) Total Customers Contacted.
4. Create the cumulative gains chart:

What does a lift chart tell you?

A lift chart graphically represents the improvement that a mining model provides when compared against a random guess, and measures the change in terms of a lift score. By comparing the lift scores for different models, you can determine which model is best.

How do you make a gain chart?

How is lift calculated for a model?

Lift is simply the ratio of these values: target response divided by average response. For example, suppose a population has an average response rate of 5%, but a certain model (or rule) has identified a segment with a response rate of 20%. Then that segment would have a lift of 4.0 (20%/5%).

What is a cumulative gain?

The cumulative gains curve is an evaluation curve that assesses the performance of the model and compares the results with the random pick. It shows the percentage of targets reached when considering a certain percentage of the population with the highest probability to be target according to the model.

What is a good lift ratio?

Lift is nothing but the ratio of Confidence to Expected Confidence. A lift ratio larger than 1.0 implies that the relationship between the antecedent and the consequent is more significant than would be expected if the two sets were independent. The larger the lift ratio, the more significant the association.

What is cumulative response?

a cumulative record, in the form of a graph, of the responses in a conditioning experiment. Lack of response is indicated by a flat horizontal line, whereas faster responses are indicated by steeper slopes away from the horizontal. Also called cumulative response record.

How are lift models calculated?

What is the acceptable value for a lift measure?

The support of this rule is 100/1000 or 10%. The confidence of the rule is 150/200 or 75%. At first sight, this association rule seems very appealing given its high confidence. However, closer inspection reveals that the prior probability of buying coffee equals 900/1000 or 90%.

How are gain and lift charts interpreted in SPSS?

In SPSS, a typical gain chart appears as follows: In today’s post, we will attempt to understand the logic behind generating a gain chart and then discuss how gain and lift charts are interpreted. To do this, we will use the example of a direct mailing company.

Is there a lift curve in IBM SPSS?

Both charts consist of a lift curve and a baseline, generally the greater the lift, the better. IBM SPSS provides the ability to easily generate both a Cumulative Gains and List chart as part of your analysis output. For next time, I will narrate the results of my thorough exploration of the process of generating these charts.

How to make a frequency distribution in SPSS?

A good way to investigate a frequency distribution like this would be with a histogram. Again, open up the Chart Builderby selecting this option through the Graphsmenu. The Chart Builder will remember your settings from the last graph you produced (unless you have closed SPSS in between).

How do you make a histogram in SPSS?

CLICK on Apply to change the histogram display. When the changes have been applied in the Chart Preview display, CLICK on OKin the Chart Builder window to produce your histogram. Your histogram should now appear in the SPSS Output window: