A bank needs to classify their loan applications to one of the three risk classes, class...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A bank needs to classify their loan applications to one of the three risk classes, class A, class B or class C. The bank considers four attributes for their classification. The following table gives past loan application classification decisions. (i) (ii) Owns Risk Home? Married? Gender Employed Class Yes Yes Male Yes B No No Female Yes -A Yes Yes Female Yes -€ Yes No Male No B No Yes Female Yes € No No Female Yes A No No Male No B Yes No Female Yes A No Yes Female Yes € Yes Yes Female Yes € Derive decision tree for classification of above loan applications using ID3 algorithm. If a new application with the attribute values, Owns home = Yes, Married = Yes, Gender = Female and Employed = Yes, has been received, How would the bank classify the application into one of the three risk classes? A bank needs to classify their loan applications to one of the three risk classes, class A, class B or class C. The bank considers four attributes for their classification. The following table gives past loan application classification decisions. (i) (ii) Owns Risk Home? Married? Gender Employed Class Yes Yes Male Yes B No No Female Yes -A Yes Yes Female Yes -€ Yes No Male No B No Yes Female Yes € No No Female Yes A No No Male No B Yes No Female Yes A No Yes Female Yes € Yes Yes Female Yes € Derive decision tree for classification of above loan applications using ID3 algorithm. If a new application with the attribute values, Owns home = Yes, Married = Yes, Gender = Female and Employed = Yes, has been received, How would the bank classify the application into one of the three risk classes?
Expert Answer:
Answer rating: 100% (QA)
Here is the constructed decision tree for the loan application dataset using the ID3 algorithm 1 Root Node Gender If Gender Male classify as Risk Clas... View the full answer
Related Book For
Introduction To Management Science and Business Analytics A Modeling And Case Studies Approach With
ISBN: 9781260716290
7th Edition
Authors: Frederick S. Hillier, Mark S. Hillier
Posted Date:
Students also viewed these programming questions
-
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
-
Leadership in Organizations Module Three Assignment Essay #1: Case Study: Echo Electronics Paul Sanchez is the production manager for Echo Electronics, a small company that makes and distributes...
-
Ned and Nelly Norbert, both aged 35, have three small children. Nancy aged 10, Nadia aged 8, and Nadine aged 3. The Norberts want to ensure that they have adequate resources in place to complete...
-
A rock bed consists of 6000 kg granite and is at 70C. A small house with lumped mass of 12000 kg wood and 1000 kg iron is at 15C. They are now brought to a uniform final temperature...
-
Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effects of each of the following transactions on the company's 2014 gross income...
-
Zachary and Carrie Sexton (the Buyers) were searching for a home in the Kings wood neighborhood of Atlanta, Georgia. The Buyers real estate agent learned that Russell and Linda Sewell (the Sellers)...
-
Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2010? b. What are the amounts of net...
-
Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000. How...
-
What is a companies TIE Ratio if there net income is $7175 there interest expense is ($1128) and there income tax expense is 1894?
-
Find a mission statement of Coca Cola Company. Write an executive summary in memo format and address the following questions. What message is the company trying to convey in their mission statement?...
-
What are the advantages of using project charters? What might be some disadvantages?
-
How might an organizations culture reflect its established values?
-
What is a stakeholder? What are some common groups of stakeholders in healthcare?
-
What critical points should a marketing plan address?
-
What can occur as an alliance matures? Why?
-
Blue Band Company is considering replacing a piece of equipment that is presently used in the production of its product. The following data are available: Replacement Old Equipment Equipment Original...
-
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
-
Compared to the KNN algorithm, what is the main advantage of the classification tree or regression tree algorithms?
-
What are the four basic assumptions of robust optimization with independent parameters?
-
What are the contingent decisions in this problem? For each one, what is the form of the resulting constraint in the BIP model?
-
Goods are products a business sells like a. haircuts. b. conveyer belts. c. car insurance. d. health care.
-
Which of the following are the factors of production? a. Labor, natural resources, capital, entrepreneurs, technology, and intellectual property b. Labor, capital, entrepreneurs, motivation, and good...
-
Which of the following is a current sociocultural trend? a. A decrease in the overall U.S. population b. An increase in the population of Americans ages 30 to 45 years old c. A decrease in the U.S....
Study smarter with the SolutionInn App