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Financial Forensics · Quiz 2 · 6 Aug 2023 · May 2023 term

Question 24: A credit analyst is developing a credit risk model for a…

Question 24

+1 markOne correct option

A credit analyst is developing a credit risk model for a bank. The analyst is evaluating the "Credit Score" feature, which represents the creditworthiness of borrowers. The analyst categorizes borrowers into four groups based on their credit scores and examines the number of good and bad loans in each group:

Calculate the Weight of Evidence (WoE) for the "Credit Score" feature for the "701-850" range.

  1. A

    1.892

  2. B

    2.303

  3. C

    2.778

  4. D

    3.171

Show answer

Correct answer

  • D

    3.171

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Question 24 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 2 paper sat on 6 Aug 2023, in the May 2023 term (IIT M DEGREE AN3 EXAM QPE3 06 Aug 2023). It carries 1 mark.

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