Question: Let's assume you are developed a model designed to screen for the stability of banks and predict bankruptcy. So your model is designed to sound
Let's assume you are developed a model designed to screen for the stability of banks and predict bankruptcy. So your model is designed to "sound an alarm" if it predicts a bank will become bankrupt. To test how well you model is working, it was applied to 3000 banks, 286 of which were known to have gone bankrupt and 2714 of which remained solvent. The data collected from the study are in the 2x2 table below. What is the PPV-Positive Predictive Value of your model? Predicted Outcome Totals Actual Outcome Bankrupt Solvent Bankrupt 201 85 286 Solvent 25 2689 2714 Totals 226 2774 3000 Group of answer choices 2689/2774 201/226 2689/2714 201/286
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