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Chapter 11 - Data

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14 views

Chapter 11 - Data

Uploaded by

varuharu.2102
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Borrower ID Credit Score Interest Rate (%) 7.

50
1 500 7.31
7.00
2 600 6.70

Interest Rate
3 700 5.95 6.50
4 700 6.40
6.00
5 800 5.40
6 800 5.70 5.50
7 750 5.90
8 550 7.00 5.00
400 450 500 550 600 650 700 750 800 850
9 650 6.50
Credit Score
10 825 5.70

Credit Score Interest Rate (%)

Mean 687.50 6.26 Average


Standard Error 35.21 0.20
Median 700.00 6.18
Mode 700.00 5.70
Standard Deviation 111.34 0.62 Dispered Data
Sample Variance 12,395.83 0.39
Kurtosis (1.01) (0.99) Peak (Up/Down)
Skewness (0.42) 0.37 Skew (Right/Left)
Range 325.00 1.91
Minimum 500.00 5.40
Maximum 825.00 7.31
Sum 6,875.00 62.56
Count 10.00 10.00

Pg. 459. 11-26)

Actual Outcome Probability of Fraud Likelihood Value


Observation (y) (p)

1 1 0.45 0.45 p^y x (1-p)^(1-y)


2 0 0.3 0.7
3 0 0.01 0.99
4 0 0.99 0.01
5 0 0.7 0.3
6 0 0.01 0.99
Predictive Value 0.0009261945 0-1 No Predictive Val 0.67 Range is good

Pg. 459. 11-23,24,25) Leave Pruned: Correctly predicted 0.77777777777778


If # of lines </= 1.5 ; # of month </= 21.5 Leave 1/3 = Leave ; <50%; Stay Pruned Prediction 0.55555555555556
If # of lines </= 3.5 ; # of month >/= 21.5 Stay 2/3 = Stay; Stay
If # of lines 1.5-3.5 Stay
If # of lines > 3.5

Pg. 460. 11-28)


Predicted Outcomes $200 profit per unit Predicted Outcomes
Total Total
Buyers Non-Buyers Buyers Non-Buyers
Buyers 20 False Negative 80 100 Buyers $4,000 0 $4,000
Actual Outcomes Actual Outcomes
Non-Buyers False Positive 100 800 900 Non-Buyers ($2,000) ($2,000)
Total 120 880 1000 Total $2,000 0 $2,000

Predicted Outcomes Predicted Outcomes


Total Total
Buyers Non-Buyers Buyers Non-Buyers
Buyers 90 10 100 Buyers 18000 0 18000
Actual Outcomes Actual Outcomes
Non-Buyers 660 240 900 Non-Buyers -132000 0 -132000
Total 750 250 1000 Total -114000 0 -114000

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