Assignment 7A.4

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University of Louisiana, Lafayette *

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510

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Industrial Engineering

Date

Dec 6, 2023

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pptx

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Assignment 7A.4 Comparing Classification Models
Start with the workflow you used for Assignment 6B.3 (Decision Tree) with the Default Data 1) Here's what 6B.3 should look like, be sure you have unchecked the Default_Indicator column in the Excel Reader node, as well as set up the Partitioning node with the usual settings - 70% relative, draw randomly, with a seed of 1234 2) Add a Binary Classification Inspector node as follows: (use the same settings for the Decision Tree Predictor and Binary Classification Inspector Nodes as provided on Slide #5)
RUN the workflow and review the results of the Binary Classification Inspector. Paste a screenshot of the output (including the Confusion Matrix) which includes your name below.
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Now, open the workflow you used for Assignment 6A.3 (Logistic Regression) with the Default Data Here's what 6A.3 should look like Your 3 rd model in that workflow should have been set up as follows: It uses all 3 variables, just as we did in the decision tree model
Now, open the workflow you used for Assignment 6A.3 (Logistic Regression) with the Default Data The Logistic Regression Predictor Node should be set up as follows: With the Binary Classification Inspector settings as follows:
RUN the workflow for the 3 rd Logistic Regression Model and review the results of the Binary Classification Inspector. Paste a screenshot of the output (including the Confusion Matrix) which includes your name below.
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Answer the following questions: Using the AUC metric, which model would you select as the best model (Decision Tree or Logistic Regression) and why? 1. Logistic Regression is what I would select as the best model because the AUC and Accuracy are closer to 1. Based on the metric, sensitivity, which model (Decision Tree or Logistic Regression) is best and why? 2. Based on the metric, sensitivity, the Decision Tree model is best because the sensitivity metric is higher than that of the Logistic Regression model, meaning fewer false negatives exist. Which is of greater concern for the bank, false negatives or false positives? Explain your reasoning. 3. False negatives are of greater concern because a false negative indicates that there is no issues with a transaction when in actuality, an issue does exist. Given your answer in the question above, how can the threshold be adjusted (increased or decreased) to improve the results of the model for the Bank? Decreasing the threshold increases the sensitivity, decreasing the amount of false negatives.