Homework Help is Here – Start Your Trial Now!
Business
Finance
i) Count Bads 684 38 659 26 724 19 861 19 757 11 315 3 Grand Total 4000 116 ii) Age Group 18-23 24-29 30-36 37-44 45-53 54+ Before running the model, Sean needs your help with the following issues. Find the Weight of Evidence (WOE) and Information value for each of the age groups. Interpret the above results and provide and provide a mathematical framework for modelling the above. Goods 646 633 705 842 746 312 3884

i) Count Bads 684 38 659 26 724 19 861 19 757 11 315 3 Grand Total 4000 116 ii) Age Group 18-23 24-29 30-36 37-44 45-53 54+ Before running the model, Sean needs your help with the following issues. Find the Weight of Evidence (WOE) and Information value for each of the age groups. Interpret the above results and provide and provide a mathematical framework for modelling the above. Goods 646 633 705 842 746 312 3884

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

Consider the following questions on credit risk

 

a) Describe the Basel II framework and its drawbacks

 

b) Sean who is a credit risk analyst has come up with the following counts of good andbadcredit score models.

1) Age Group 18-23 24-29 30-36 37-44 45-53 54+ Before running the model, Sean needs your help with the following issues. Find the Weight of Evidence (WOE) and Information value for each of the age groups. Interpret the above results and provide and provide a mathematical framework for modelling the above. ii) Count Bads Goods 684 38 646 659 26 633 724 19 705 861 19 842 757 11 746 315 3 312 Grand Total 4000 116 3884
Transcribed Image Text:1) Age Group 18-23 24-29 30-36 37-44 45-53 54+ Before running the model, Sean needs your help with the following issues. Find the Weight of Evidence (WOE) and Information value for each of the age groups. Interpret the above results and provide and provide a mathematical framework for modelling the above. ii) Count Bads Goods 684 38 646 659 26 633 724 19 705 861 19 842 757 11 746 315 3 312 Grand Total 4000 116 3884
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Inventory Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS