EMC Data Science D-DS-FN-23 Question # 10 Topic 2 Discussion
D-DS-FN-23 Exam Topic 2 Question 10 Discussion:
Question #: 10
Topic #: 2
A logistic regression model is built to determine the probability of a credit card borrower defaulting on a credit loan. A threshold value of 0.3 is selected. Which statement can be used to predict a borrower will default?
A.
If probability > 0.1, then predict the borrower will default
B.
If probability < 0.1, then predict the borrower will default
C.
If probability > 0.3, then predict the borrower will default
D.
If probability < 0.3, then predict the borrower will default
In logistic regression, the threshold determines the cutoff for classifying an outcome. If the probability exceeds the threshold (0.3 in this case), the model predicts the positive class—here, that the borrower will default.
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