Kevin Brownis the management accountant at and Sons Bank. Some of his colleagues attended a conference recently
Question:
Kevin Brownis the management accountant at and Sons Bank. Some of his colleagues attended a conference recently where they learned that machine learning can be used to accurately predict loan performance. Excited by the possibilities, they asked to work with the data science team to develop a machine learning model that predicts whether a loan will repay or default. knows that defaulting loans have significantly hurt and Sons' profitability.
Kevin tells the data science team that his colleagues will appreciate a model that is interpretable and easy to understand, so they decide to use a decision tree. The team selects a random sample of loans (three loans that defaulted and loans that repaid) from and Sons' internal loan database and begins the analysis.
Strategic Management and Competitive Advantage Concepts and Cases
ISBN: 978-0133127409
5th edition
Authors: Jay B. Barney, William Hesterly