Research an instance where categorical prediction has been used by a business or governmental organization. Simply typing "categorical prediction" intowww.news.google.comwill reveal a number of news articles relating to this topic.

Read a few articles and select one that is interesting to you. Make sure you identify the risks that your article addresses into one of the four quadrants of a risk matrix: High Probability/High Impact; High Probability/Low Impact; Low Probability/High Impact; Low Probability/Low Impact. Justify your classification with information from your article. Then, discuss the potential problems that could (or did) arise if the predictive activities discussed in your chosen article yielded bad results. What could (or did) happen as a result of erroneous or unreliable categorization through predictive modeling?