Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer both parts of the question 22-23. A credit card issuer has built two different credit scoring models that predict the propensity of customers
please answer both parts of the question
22-23. A credit card issuer has built two different credit scoring models that predict the propensity of customers to default on their loans. The outputs of the first model for a test dataset are shown in the table below. The outputs of the second model for the same test dataset are shown in the table below. Based on the predictions of these models, perform the following tasks to compare their performance. The ROC curve is created by plotting the true positive rate (TPR) against the false positive rate (FPR) at various threshold settings. ROC analysis provides tools to select possibly optimal models and to discard suboptimal ones independently from (and prior to specifying) the cost context or the class distribution. ROC analysis is related in a direct and natural way to the cost/benefit analysis of diagnostic decision-making. In a typical scenario with two target levels, a prediction score in the range [0,1] is generated by a model, and a threshold of 0.5 is used to convert this score into a categorical prediction as follows: threshold(score, 0.5 ) = positive if score >=0.5, negative otherwise. Calculate the missing point (TPR, FPR) in the ROC curve for Model 1. To generate the point for Model 1, use a threshold value of 0.51 . (0.7647,0.2308) (06647,0.1308) (08947, 0.1308) (0.9412,0.0769) (0.8412,0.0669) Question 23 3 pts Calculate the missing point (TPR, FPR) in the ROC curve for Model 2. To generate the point for Model 2, use a threshold value of 0.43 . (0.6647,0.1308) (0.8412,0.0669) (05647, 0.3308) (0.7647,0.2308) (0.9412,0.0769)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started