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Guidelines for assessing the value of a predictive algorithm: a case study

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  • Ossi Ylijoki

    (Lappeenranta University of Technology (LUT))

Abstract

Predictive algorithms are increasingly used to support decision making. Understanding the costs and benefits of a predictive model is an important aspect for businesses. However, algorithms are abstract, and their impact oftentimes remains vague. We present a case study, where a machine-learning algorithm is used for bid qualification. We show how to apply classification matrices for business value assessment and propose guidelines and metrics for interpreting the impact in practical solutions.

Suggested Citation

  • Ossi Ylijoki, 2018. "Guidelines for assessing the value of a predictive algorithm: a case study," Journal of Marketing Analytics, Palgrave Macmillan, vol. 6(1), pages 19-26, March.
    • Handle: RePEc:pal:jmarka:v:6:y:2018:i:1:d:10.1057_s41270-017-0027-1
    DOI: 10.1057/s41270-017-0027-1
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    References listed on IDEAS

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