1. Two logistic regression models were built on a data set, Model 1 has AUC 0.780, Model 2 has AUC 0.683, which of the following statement is FALSE?

a. Model 1 has stronger discriminatory power than Model 2

b. Model 1 has weaker discriminatory power than Model 2

c. Based on the rule of thumb, Model 1 has adequate discriminatory power

d. Based on the rule of thumb, Model 2 does not have adequate discriminatory power

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2. The ROC plot below is from a logistic regression model built to predict bankruptcy. If a firm went bankrupt the response variable is 1. Suppose cut-off probability values of 0.2, 0.4, and 0.9 are marked on the curve. Which one of A, B, C corresponds to cut-off probability 0.9?

C 0.8 B 0.6 True positive rate 0.4 A 0.2 0.2 0.4 D.6 0.8 False positive rate\f