Glossary

Scenario 1: Churn Prediction (Athena Retail Group)

**True Positive:** Model predicts customer will churn, and she does. Athena sends a retention offer. Good outcome — the offer costs $20 but saves a customer worth $500/year. - **False Positive:** Model predicts customer will churn, but she was never going to leave. Athena sends a $20 retention offer

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