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Table 7 Comparison of prediction power of extrapolation vs. D/S model

From: Airline new customer tier level forecasting for real-time resource allocation of a miles program

Question asked D months after 1st flight: will they become Silver within S months?

Case

D

S

Extrapolation of miles Rx1

D/S Model Rx2P3A4

0

0.5

3

0.39

0.60 81% 31%

1

1

1

0.39

0.71 87% 53%

2

1

2

0.39

0.70 89% 48%

3

3

1

0.50

0.89 97% 82%5

4

3

3

0.39

0.67 95% 46%

5

6

3

0.51

0.83 96% 69%

  1. Notes. 1To compare predictive power between two models we use correlation as a proxy. Rx = correlation of accumulated miles with binary variable silver_attain. 2correlation of the Model’s prediction with binary variable silver_attain. 3P = Precision, of all users who were predicted to become Silver, How many of them did indeed become silver? 4A = Accuracy: Of all users who will become silver how many did we not miss? 5: See Table 8 for details on case 3.