Business Problem: Profit Analysis of Credit Data.

Business Problem: Profit Analysis of Credit Data.

Leveraging customer financial data to facilitate credit decisions surrounding loans. In this case, making a correct decision means that the bank correctly predicts a customer’s credit is in good standing and hence is able to provide a loan that will be repaid. On the other hand, if the bank predicts that a customer is in good standing and the opposite is true, then the bank will suffer a loss. Overall the case illustrates how decisions surrounding customer credit data impact a financial institution’s cost/profit perspective.

Analytical Approach: Explore the use of the following predictive analytical tools in modeling this

problem:

– Regression

– Decision Tree

– Neural Network

Please submit your solution to the case.  Your submission should consist of a 1-page description of how you approached the problem, what tools or methods were used in solving the problem, and a short summary of your findings.

Business Problem: Profit Analysis of Credit Data.