Closed
Changing the default propensity from Adaptive Modelling
When a new proposition is deployed the adaptive model gives all customers a default value of 0.5 until the model has enough responses to get a better estimate.
Is there a way to change this default value (we're using version 7.2.2 if this matters)?
Posted: 4 years ago
PEGA
Pegasystems Inc.
NL
Hi Chris,
Best practice is to apply a "propensity smoothing" formula that balances between an a priori propensity and the model propensity. It really just is a weighted average between the two but perhaps best to check with your Pega consultant team how this typically implemented.
Having said that, an "optimistic" starting propensity is best practice so new actions get exposure. Perhaps too much initially, but their models will adjust quickly as responses are processed and the model matures.
-Otto