Alternatively, we can incorporate costs and benefits by instead computing the average cost (or benefit) per decision. Other applications involving cost–benefit analysis include loan application decisions and target marketing mailouts. For example, the cost of loaning to a defaulter greatly exceeds that of the lost business incurred by denying a loan to a nondefaulter. Similarly, in an application that tries to identify households that are likely to respond to mailouts of certain promotional material, the cost of mailouts to numerous households that do not respond may outweigh the cost of lost business from not mailing to households that would have responded. Other costs to consider in the overall analysis include the costs to collect the data and to develop the classification tool.