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Hi, I need help in the following questions 2. (10 points] Three annual nancial ratios are available to help predict if a bank will enter

Hi, I need help in the following questions

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2. (10 points] Three annual nancial ratios are available to help predict if a bank will enter nancial distress in the coming year. These ratios are I Ratiol = Total Capital;I Total Assets - Ratio? : Total Expenses/Total Assets I Ratio3 = Total Loan and Leases/Total Deposits It is recommended that the two groups of banks are separated by a decision hyperplane as follows: If Ratiol (3): Ratio?) + Ratio3 5 10: then Group 1, Else Group 2. where: Group 1 : nancially distressed banks (Negative class] Group '2 : nancially strong banks (Positive class} Data from 12 banks are summarized in the following table: Obs Group Ratiol Ratio? Ratio3 1 1 8.1 0.13 0.54 2 1 6.6 0.10 1.04 3 1 5.8 0.11 0.56 4 1 4.5 0.11 0.59 5 1 9.1 0.14 0.74 5 1 8.9 0.12 0.75 7 2 14.0 0.08 0.46 8 2 9.6 0.08 0.72 9 2 12.4 0.08 0.43 10 2 12.6 0.0'9I 0.30 11 2 9.8 0.07 0.57 12 2 8.3 0.0'9I 0.51 (a) {2 points} Show a confusion matrix and compute the following: {b} (2 points } accuracy, {c} {4 points } true positive rateJ true negative rate {d} (2 points } area under the curve (AUC)

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