minimum risk

问题如下：

A risk officer of a bank is evaluating the four rules for credit scoring model performance measurement. Which of the following is correct?

选项：

A.

The “Minimum-Risk” decision rule tries to minimize both type I and type II errors.

B.

The Neyman-Pearson rule minimizes type II error with type I error remaining constant.

C.

The Neyman-Pearson rule minimizes type I error with type II error remaining constant.

D.

The “Minimum-Risk” decision rule tries to minimize both credit and market risks.

解释：

The Neyman-Pearson rule minimizes type I error with type II error remaining constant. There are four rules “Minimum-Error”, “Minimum-Risk”, Neyman-Pearson, and Minimax. The “Minimum-Risk” decision rule tries to minimize the risk of misclassification. It has nothing to do with market risk. Hence d is wrong.