algorithm behind the Lift Chart

This is a discussion on algorithm behind the Lift Chart within the sqlserver-datamining forums in Data Warehousing category; Does anyone know the algorithm behind the Lift Chart? If yes, can you please point me to the right direction? I could not find anything on the web... Assuming x is profit and y is the probability, the algorithm behind the Profit Chart seems to be this: 1) Calculate profit for each percent point: (hits*Revenue per individual) - (hits + misses)*[individual cost] 2) Calculate cumulative profit from 0 percent to the current percent point - [Fixed cost] I am really not very sure how the Population is used within Profit Chart. Regards, Igor...

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Old 08-25-2008, 03:52 PM
Default algorithm behind the Lift Chart

Does anyone know the algorithm behind the Lift Chart? If yes, can you
please point me to the right direction? I could not find anything on the
web...



Assuming x is profit and y is the probability, the algorithm behind the
Profit Chart seems to be this:



1) Calculate profit for each percent point: (hits*Revenue per
individual) - (hits + misses)*[individual cost]

2) Calculate cumulative profit from 0 percent to the current percent
point - [Fixed cost]



I am really not very sure how the "Population" is used within Profit Chart.



Regards,

Igor




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