Question: A bank has developed a classification model to predict what type of customer is most likely to be interested in opening an IRA (retirement savings)

A bank has developed a classification model to predict what type of customer is most likely to be interested in opening an IRA (retirement savings) account. Applying a classification technique to past customer records has produced the following output. Please use this information to answer the next four questions.

Question 1 (5 points)

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According to the decision model, which customers are most likely to open an IRA account? (select two answers)

Question 1 options:

A)

People with (annual) incomes less than $50,000 and NOT married and own their home?

B)

People with (annual) incomes over $50,000.

C)

People with (annual) incomes less than $50,000 and married?

D)

People with (annual) incomes less than $50,000 and NOT married and do NOT own their home?

Question 2 (5 points)

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According to the decision model, which customers are NOT likely to open an IRA account? (select two answers)

Question 2 options:

A)

People with (annual) incomes less than $50,000 and NOT married and do NOT own their home?

B)

People with (annual) incomes less than $50,000 and married?

C)

People with (annual) incomes less than $50,000 and NOT married and own their home?

D)

People with (annual) incomes over $50,000.

Question 3 (5 points)

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In what percentage of the cases did the model predict correctly?

Question 3 options:

A)

37 / 42 or 88%

B)

37.17%

C)

62.83%

D)

223 / 377 or 59%

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