If the company estimates a response rate of 3%, should it proceed with the mailing?

 

The goal of this model was to estimate the profit/loss of a catalog mailing as measured by the one independent variable, Response Rate. With this simple model it appears that a response rate of 3%should signal the company to suspend the mailing, but unfortunately this model does not take in to account other variables such as seasonality, repeat business, etc… so with the current level of information this question cannot be answered in a most efficient manner.