Examlex

Solved

A Bank Is Interested in Identifying Different Attributes of Its

question 33

Essay

A bank is interested in identifying different attributes of its customers and below is the sample data of 150 customers. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female. And for the dummy variable Personal loan, 0 represents a customer who has not taken personal loan and 1 represents a customer who has taken personal loan.
A bank is interested in identifying different attributes of its customers and below is the sample data of 150 customers. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female. And for the dummy variable Personal loan, 0 represents a customer who has not taken personal loan and 1 represents a customer who has taken personal loan. Partition the data into training (50 percent), validation (30 percent), and test (20 percent) sets. Fit a classification tree using Age, Gender, Work experience, Income (in 1000 $), and Family size as input variables and Personal loan as the output variable. In Step 2 of XLMiner's Classification Tree procedure, be sure to Normalize input data and to set the Minimum #records in a terminal node to 1. In Step 3 of XLMiner's Classification Tree procedure, set the maximum number of levels to seven. Generate the Full tree, Best pruned tree, and Minimum error tree. Generate lift charts for both the validation data and the test data. a. Interpret the set of rules implied by the best pruned tree that characterize the customers who have taken personal loan. b. For the default cutoff value of 0.5, what is the overall error rate, Class 1 error rate, and Class 0 error rate of the best pruned tree on the test data? Interpret these respective measures. c. Examine the decile-wise lift chart for the best pruned tree on the test data. What is the first decile lift? Interpret this value.
A bank is interested in identifying different attributes of its customers and below is the sample data of 150 customers. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female. And for the dummy variable Personal loan, 0 represents a customer who has not taken personal loan and 1 represents a customer who has taken personal loan. Partition the data into training (50 percent), validation (30 percent), and test (20 percent) sets. Fit a classification tree using Age, Gender, Work experience, Income (in 1000 $), and Family size as input variables and Personal loan as the output variable. In Step 2 of XLMiner's Classification Tree procedure, be sure to Normalize input data and to set the Minimum #records in a terminal node to 1. In Step 3 of XLMiner's Classification Tree procedure, set the maximum number of levels to seven. Generate the Full tree, Best pruned tree, and Minimum error tree. Generate lift charts for both the validation data and the test data. a. Interpret the set of rules implied by the best pruned tree that characterize the customers who have taken personal loan. b. For the default cutoff value of 0.5, what is the overall error rate, Class 1 error rate, and Class 0 error rate of the best pruned tree on the test data? Interpret these respective measures. c. Examine the decile-wise lift chart for the best pruned tree on the test data. What is the first decile lift? Interpret this value.
A bank is interested in identifying different attributes of its customers and below is the sample data of 150 customers. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female. And for the dummy variable Personal loan, 0 represents a customer who has not taken personal loan and 1 represents a customer who has taken personal loan. Partition the data into training (50 percent), validation (30 percent), and test (20 percent) sets. Fit a classification tree using Age, Gender, Work experience, Income (in 1000 $), and Family size as input variables and Personal loan as the output variable. In Step 2 of XLMiner's Classification Tree procedure, be sure to Normalize input data and to set the Minimum #records in a terminal node to 1. In Step 3 of XLMiner's Classification Tree procedure, set the maximum number of levels to seven. Generate the Full tree, Best pruned tree, and Minimum error tree. Generate lift charts for both the validation data and the test data. a. Interpret the set of rules implied by the best pruned tree that characterize the customers who have taken personal loan. b. For the default cutoff value of 0.5, what is the overall error rate, Class 1 error rate, and Class 0 error rate of the best pruned tree on the test data? Interpret these respective measures. c. Examine the decile-wise lift chart for the best pruned tree on the test data. What is the first decile lift? Interpret this value.
A bank is interested in identifying different attributes of its customers and below is the sample data of 150 customers. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female. And for the dummy variable Personal loan, 0 represents a customer who has not taken personal loan and 1 represents a customer who has taken personal loan. Partition the data into training (50 percent), validation (30 percent), and test (20 percent) sets. Fit a classification tree using Age, Gender, Work experience, Income (in 1000 $), and Family size as input variables and Personal loan as the output variable. In Step 2 of XLMiner's Classification Tree procedure, be sure to Normalize input data and to set the Minimum #records in a terminal node to 1. In Step 3 of XLMiner's Classification Tree procedure, set the maximum number of levels to seven. Generate the Full tree, Best pruned tree, and Minimum error tree. Generate lift charts for both the validation data and the test data. a. Interpret the set of rules implied by the best pruned tree that characterize the customers who have taken personal loan. b. For the default cutoff value of 0.5, what is the overall error rate, Class 1 error rate, and Class 0 error rate of the best pruned tree on the test data? Interpret these respective measures. c. Examine the decile-wise lift chart for the best pruned tree on the test data. What is the first decile lift? Interpret this value.
Partition the data into training (50 percent), validation (30 percent), and test (20 percent) sets. Fit a classification tree using Age, Gender, Work experience, Income (in 1000 $), and Family size as input variables and Personal loan as the output variable. In Step 2 of XLMiner's Classification Tree procedure, be sure to Normalize input data and to set the Minimum #records in a terminal node to 1. In Step 3 of XLMiner's Classification Tree procedure, set the maximum number of levels to seven. Generate the Full tree, Best pruned tree, and Minimum error tree. Generate lift charts for both the validation data and the test data.
a. Interpret the set of rules implied by the best pruned tree that characterize the customers who have taken personal loan.
b. For the default cutoff value of 0.5, what is the overall error rate, Class 1 error rate, and Class 0 error rate of the best pruned tree on the test data? Interpret these respective measures.
c. Examine the decile-wise lift chart for the best pruned tree on the test data. What is the first decile lift? Interpret this value.

Definitions:

Put Option

A financial agreement granting the bearer the option, without being compelled, to offload a predetermined quantity of a fundamental asset at an agreed-upon price during a designated period.

Futures Contract

A contractual arrangement committing to the purchase or sale of a specific financial asset or commodity at an agreed price, set to occur at a future date.

Short-Sale

A trading strategy that involves selling borrowed securities with the expectation of buying them back at a lower price to profit from a decline in their value.

LIBOR

The London Interbank Offered Rate, previously a benchmark interest rate at which major global banks lend to one another.

Related Questions

Q3: Which of the following is the dominant

Q6: Which of the following states the objective

Q7: The nurse talks with a clinic patient

Q10: Which of the following is the missing

Q12: A survey is conducted to determine whether

Q15: An elderly woman comes into the clinic

Q20: A patient is admitted to the hospital

Q25: Using a large value for order k

Q28: A survey on the most preferred newspaper

Q54: The minimax regret approach is<br>A) purely optimistic.<br>B)