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P06Applied Prediction and Automation
Expanded Package
Credit risk prediction
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Sahyog Cooperative Bank in Nashik took 9,195 loan applications last year, approved 62.5% of them and lost money on 14% of those. The board wants to lend to more people without losing more money. The bank has repayment records for the loans it made - and nothing at all for the 3,444 it refused.
What is in it
- 13 teaching steps, one animation each
- 26 labs, checked live against the case data
- 65 step questions, every option explained
- 20 final paper questions, marked on submission
The steps
- 1Two ways to lose money
- 2What counts as default?
- 3The book you can see
- 4Columns you have on the morning of the decision 2 labs
- 5The columns a lender may not use
- 6The 236 loans the bank made on purpose
- 7Train on the first half, test on the second
- 8From probability to points
- 9Reading the scorecard
- 10Where to draw the line
- 11Lending to the people you used to refuse
- 12Watching it after it goes live
- 13Fair lending