Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Produce a table similar to Table 5.3 for the situation where the data in Table 5.1 is changed so that the third loan is good
Produce a table similar to Table 5.3 for the situation where the data in Table 5.1 is changed so that the third loan is good and the eighth loan defaults
Table 5.3
C | w1 | w2 | b | Loans misclassified | Width of pathway |
0.01 | 0.054 | 0.022 | 5.05 | 10% | 34.4 |
0.001 | 0.040 | 0.012 | 3.33 | 10% | 48.2 |
0.0005 | 0.026 | 0.010 | 2.46 | 10% | 70.6 |
0.0003 | 0.019 | 0.006 | 1.79 | 20% | 102.2 |
0.0002 | 0.018 | 0.003 | 1.69 | 30% | 106.6 |
Table 5.1
Credit score | Adjusted credit score | Income ('000s) | Default =0; good loan =1 |
660 | 40 | 30 | 0 |
650 | 30 | 55 | 0 |
650 | 30 | 63 | 0 |
700 | 80 | 35 | 0 |
720 | 100 | 28 | 0 |
650 | 30 | 140 | 1 |
650 | 30 | 100 | 1 |
710 | 90 | 95 | 1 |
740 | 120 | 64 | 1 |
770 | 150 | 63 | 1 |
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