Question: Please answer 1, 2 and 3 number questions with proper explanation A bank is interested in identifying different attributes of its customers, and below is

Please answer 1, 2 and 3 number questions with proper explanation

A bank is interested in identifying different attributes of its customers, and below is the sample data of 150 customers. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female.And for the dummy variable Personal loan, 0 represents a customer who has not taken a personal loan and 1 represents a customer who has taken a personal loan.

Partition the data into training (50 percent), validation (30 percent), and test (20 percent) sets. Classify the data using k-nearest neighbors with up to k = 10. Use Age, Gender, Work experience, Income (in $1000s), and Family size as input variables and Personal loan as the output variable. Be sure to Normalize input data and to Score on best k between 1 and specified value. Generate lift charts for both the validation data and test data.

  1. For the cutoff probability value 0.5, what value of k minimizes the overall error rate on the validation data? Explain the difference in the overall error rate on the training, validation, and test data.
  2. Examine the decile-wise lift chart on the test data. Identify and interpret the first decile lift.
  3. For cutoff probability values of 0.5, 0.4, 0.3, and 0.2, what are the corresponding Class 1 error rates and Class 0 error rates on the validation data?

Age

Gender

Work experience

Income (in

$1000s)

Family size

Personal loan

47

0

22

53

3

1

26

1

3

22

1

1

38

0

16

29

4

1

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0

12

32

6

1

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3

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