Profit Chart

A Profit Chart provides a visual summary of the usefulness of one or more statistical models for predicting a binary (categorical) outcome variable (dependent variable); for multiple-category) outcome variables, profit charts can be computed for each category. The profit chart summarizes the costs of the individual observations and the estimated profit.  

To illustrate how the profit chart is constructed, consider this example:

Suppose you have a mailing list of previous customers of your business, and you want to offer those customers an additional service by mailing an elaborate brochure and other materials describing the service. Given the baseline response rate and the cost of the mail-out, sending the offer to all customers would result in a net loss.

You can use STATISTICA General Classification and Regression Trees (GC&RT) to build a predictive model to identify those customers most likely to respond based on the data collected in the previous mail-out campaign. Using this predictive model, you can compute the cost of contacting a certain number of customers along with the estimated profit. A characteristic profit chart will have profit increasing up to a certain point, after which profits begin to decrease. This maximum point determines the number of customers to whom to mail the promotion.