logistics regression

问题如下：

Edward Lovell recently joined Omega Retail Loans as a credit analyst. Omega is a consumer lending company that specializes in retail loans to individuals. Lovell’s first assignment is to review an internal credit scoring model, named ALPHA, that was created by a former employee using 25 defined features and make recommendations on model performance improvements.

Exhibit 1 provides results from a sample of loans from the ALPHA model that compared expected and actual defaults over the past 12 months.

Using Exhibit 1, the best description of the ALPHA model is that it is an example of a(n):

选项：

A.

logistic regression model

B.

unsupervised machine learning model

C.

classification and regression tree (CART) model.

解释：

A is correct. The ALPHA model, in Exhibit 1, is a logistic regression or classification model. It is structured as a binary classification model (1, 0) because it simply determines the probability of default on a loan, which is a yes/no type event, and assigns a value of 1 or 0 to the result.

B is incorrect. Given that there is a labeled dataset included (whether the loan went into default or non-default) in the model and description, it would not be considered an unsupervised model.

C is incorrect. A CART model is typically based on non-linear datasets and a series of potential decision points in the data similar to a decision tree. The outlined model is a single-layer prediction of default or non-default based on available customer information.