Quiz: Test Set Analysis and Financial Insights

Quiz yourself on the test set analysis and financial insights delivery concepts you learned this chapter.

Here’s a rapid-fire round of questions about this chapter.

1

What is the benefit of using the ROC AUC metric in model performance analysis?

A)

It provides a histogram of predicted probabilities.

B)

It groups borrowers together based on the decile of predicted probability.

C)

It computes the true default rate within each decile of predicted probability.

D)

It summarizes model performance on a dataset with a single number.

Question 1 of 50 attempted

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