Figure 1-4, Confusion Matrix

This is a 2 by 2 table showing actual values (rows) versus predicted values (columns). There are two values for each: churners and non-churners (a churner is someone who switches from one product or service or company to another).

The first cell (upper left) is the number of actual churners that were predicted to be churners. The value entered is 516.

The second cell (upper right) is the number of actual churners that were predicted to be nonchurners. The value entered is 25.

The third cell (lower left) is the number of actual nonchurners that were predicted to be churners. The value entered is 10.

The fourth cell (lower right) is the number of actual nonchurners that were predicted to be nonchurners. The value entered is 725.

This means that the predictions were correct 516 + 725 = 1241 times, and incorrect 25 + 10 = 35 times.