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5 . 5 . a large number of insurance records are to be examined to develop a model for predicting fraudulent claims. of the claims
a large number of insurance records are to be examined to develop a model for predicting fraudulent claims. of the claims in the historical database, were judged to be fraudulent. a sample is taken to develop a model, and oversampling is used to provide a balanced sample in light of the very low response rate. when applied to this sample n the model ends up correctly classifying frauds and nonfrauds. it missed frauds and classified records incorrectly as frauds when they were not.
a produce the confusion matric for the sample as it stands
b find the adjusted misclassifcation rate adjusting for the oversampling
c what percentage of new records would you expect to be classified as fraudulent?
Please provide the R code if necessary.
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