Question: Case 4 Prescriptive Analytics and Profit Optimization . The guide to this case can be found in Nisbet, et.al. [2009] Handbook of Statistical Analysis and

Case 4 Prescriptive Analytics and Profit

Case 4 Prescriptive Analytics and Profit Optimization . The guide to this case can be found in Nisbet, et.al. [2009] Handbook of Statistical Analysis and Data Mining Applications, Tutorial M, Pages 651 - 680. . Business Problem: Prescriptive Analytics and Profit Optimization - Leveraging customer financial data to facilitate credit decisions surrounding loans. In this case, making a correct decision means that the bank correctly predicts a customer's credit is in good standing and hence is able to provide a loan that will be repaid. On the other hand, if the bank predicts that a customer is in good standing and the opposite is true, then the bank will suffer a loss. Overall the case illustrates how making the "best" decisions surrounding customer credit data impacts a financial institution's overall profitability. Analytical Approach: Explore the use of the following predictive analytical tools in modeling this problem: Regression Decision Tree Neural Network Please identify the top 10 most profitable customers? . Please submit your solution to CASE 4. Your submission should consist of a 1 page description of how you approached the problem, what tools or methods were used in solving the problem, and a short summary of your findings. Case 4 Prescriptive Analytics and Profit Optimization . The guide to this case can be found in Nisbet, et.al. [2009] Handbook of Statistical Analysis and Data Mining Applications, Tutorial M, Pages 651 - 680. . Business Problem: Prescriptive Analytics and Profit Optimization - Leveraging customer financial data to facilitate credit decisions surrounding loans. In this case, making a correct decision means that the bank correctly predicts a customer's credit is in good standing and hence is able to provide a loan that will be repaid. On the other hand, if the bank predicts that a customer is in good standing and the opposite is true, then the bank will suffer a loss. Overall the case illustrates how making the "best" decisions surrounding customer credit data impacts a financial institution's overall profitability. Analytical Approach: Explore the use of the following predictive analytical tools in modeling this problem: Regression Decision Tree Neural Network Please identify the top 10 most profitable customers? . Please submit your solution to CASE 4. Your submission should consist of a 1 page description of how you approached the problem, what tools or methods were used in solving the problem, and a short summary of your findings

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