You are the owner of an eCommerce platform. Let’s say you would like to place an advertisement on Facebook.
The Facebook advertising team tells you that the cost of a specific ad placement is per impression, and the click-through rate (click per impression) is 1%. On the other hand, based on your historical data, you have an average of 2% transaction rate on your website (number of transactions per website visit). How much would the overall advertising cost per transaction be?Next question: Overfit Avoidance