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

Question 25: In credit risk modeling, the Weight of Evidence (WoE) is…

Question 25

+1 markOne correct option

In credit risk modeling, the Weight of Evidence (WoE) is used to:

  1. A

    Measure the accuracy of a predictive model.

  2. B

    Assess the total amount of information in a dataset.

  3. C

    Evaluate the predictive power of a feature in distinguishing between default and non-default cases.

  4. D

    Calculate the proportion of good loans to bad loans in a dataset.

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Correct answer

  • C

    Evaluate the predictive power of a feature in distinguishing between default and non-default cases.

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Question 25 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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