. Chrome File Edit View History Bookmarks Profiles Tab Window Help . SatSepiil 'P Take a Test Disha Patel 6 C mathxl.com . ' *r l' i 4/ Welcome, Disha ... U ADHE . Thank You ADHE ~ Scholarshi... in Linkedln Login, Si... N Contact information El candidate gradlea... ' Gmail E Principal of Marke... E Other Bookmarks El Reading List Fall 2021 Intermediate Managerial Cost Disha Patel I | 09/l1/21 12:00 PM ' ' Chapter 11 Quiz Question 3 This Quiz 4 pts possible Submit Quiz Drew Pinkerton is the management accountant at Beech Bank. where the data science department is leading an initiative to predict whether loans will default or repay. The default rate in the training set is 25%. Alter building a model on the training set that predicts whether a loan will default or repay. the data scientist applies it to the validation set of 1.000 observations to evaluate its performance. Read the @uirements. - X Requirements Requirement 1. Help the data scientist complete the confusion metrixes below for different model thresholds. 1. Help the data scientist complete the contusion matn'xes below for dierem model thresholds. Start b com letin the confusion matrix for the cutoff oint 0.40. Y D 9 p 4 Confusion Matrix (0.40) Confuslnn Malrlx (0.55) Conruslon Marrlx(o. o) Pmdimd Pndimd Predicted Outcomes Outcomes Outcomes Default Repay Total Default Repay Total Default Repay Total Actual Default Actual Default Actual Default 1 80 250 Outcomes Repay 430 270 750 Outcomes Repay 480 270 750 Outcomes Reply 750 101.. 700 Loco Total 700 1.000 Total 700 1. Assume that Beech Bank has 31,000 to invest in each loan of the validation sample. If Beech Bank does not invest in a loan. it keeps the Complete the contusion matrix for the cutoff point 0.55. money in a risk-free investment at 2% a year for 3 years (ignore the lime value of money). If Beech invests in a loan that eventually repays, it receives 12% a year for 3 years. It Beech invests in a loan that eventually defauls, Beech loses 60% of the amount of the loan. Fill in the Confusion Matrix (0.55) payolf matrix below. Which model threshold should Drew and the data scientist use? Predicted Outcomes Payoff Matrix Default Repay Total Predicted Outcomes Actual Default 180 250 Default Repay Outcomes Repay 750 100 Not Invest in Loan) (Invest in Loan) Total 700 Actual Default Requirement 2. Assume that Beech Bank has $1.000 to invest in each loan at the validation sample. If Beech Bank does not inv "''"\" Repay it reoeives 12% a year for 3 years. If Beech invests in a loan that eventually defaults. Beech loses 60% of the amount of the loan. Fill in the Start by oonstruling the payroll matrix. (Enter a loss amount with a minus sign or parentheses.) Predicted Outcomes Default Repay Chrome File Edit View History Bookmarks Profiles Tab Window Help M Q 8 Sat Sep 11 12:01 PM Take a Quiz/Test P Take a Test - Disha Patel O C mathxl.com/Student/PlayerTest.aspx?testld=233373532¢erwin=yes Welcome, Disha -... ADHE - Thank You ADHE - Scholarshi... in Linkedin Login, Si.. FSA Contact Information _ candidate gradlea... M Gmail Principal of Marke... Other Bookmarks Reading List Fall 2021 Intermediate Managerial Cost Disha Patel & | 09/11/21 12:01 PM Predicted Outcomes Default Repay Total Actual Default Outcomes Repay 480 270 Tota 700 Complete the confusion matrix for the cutoff point 0.55. Confusion Matrix (0.55) Predicted Outcomes Default Repay Total Actual Default 180 Outcomes Repay Total Requirement 2. Assume that Beech Bank has $1,000 to invest in each loan of the validation sample. If Beech Bank does not invest in a loan, it keeps the money in a risk-free investment at 2% a year for 3 years (ignore the time value of money). If Beech invests in a loan that eventually repays, it receives 12% a year for 3 years. If Beech invests in a loan that eventually defaults, Beech loses 60% of the amount of the loan. Fill in the payoff matrix below. Which model threshold should Drew and the data scientist use? Start by construting the payroll matrix. (Enter a loss amount with a minus sign or parentheses.) X Payoff Matrix Requirements Predicted Outcomes efault Repay 1. Help the data scientist complete the confusion matrixes below for different model thresholds. (Do Not Invest in Loan) (Invest in Loan) Confusion Matrix (0.40) Confusion Matrix (0.55) Actual Default Predicted Predicted Outcome Repay Outcomes Outcomes Default Repay Total Default Repay Total Calculate the payoff at each cutoff probability. Actual Default Actual Default 180 Total payoff at cutoff 0.40 = Outcomes Repay 480 270 Outcomes Repay Total payoff at cutoff 0.55 = Total 700 1,000 Total 700 . Assume that Beech Bank has $1,000 to invest in each loan of the validation sample. If Beech Bank does not invest in a loan, it keeps the money in a risk-free investment at 2% a year for 3 years (ignore the time value of money). If Beech invests in a loan that eventually repays it receives 12% a year for 3 years. If Beech invests in a loan that eventually defaults, Beech loses 60% of the amount of the loan. Fill in the payoff matrix below. Which model threshold should Drew and the data scie Next Payoff Matrix Predicted Outcomes Default Repay (Do Not Invest in Loan) (Invest in Loan) Actual Default Outcomes Repay Print Done SE tv 14