Question: The table below contains some data on past customer loan repayment behavior. We are interested in the Outcome column, and in particular would like to

The table below contains some data on past customer loan repayment behavior. We are interested in the Outcome column, and in particular would like to know whether a borrower will default or not. Assume the a value of Default is a positive.

Suppose we use the classification rule: if a person has a credit score less than 600 (Credit Score

What is the False Negative Rate (FNR) of this classification rule in the data below? (Round answer to 2 decimal places).

The table below contains some data on past

Answer:

Customer Number Age Credit Score Home Status Vehicle Type Outcome 1 52 420 Own Sedan Default 2 52 460 Own Sedan Default 3 64 480 Rent Sports Repaid 4 31 580 Rent Sedan Default 5 36 620 Own Sports Repaid Repaid 6 29 690 Rent Pickup 7 23 730 Rent Sedan Default 27 760 Rent Pickup Repaid 8 9 43 790 Own Pickup Repaid

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