i) Count Bads 684 38 659 26 724 19 861 19 757 11 315 3 Grand Total 4000 116 ii) Age Group 18-23 24-29 30-36 37-44 45-53 54+ Before running the model, Sean needs your help with the following issues. Find the Weight of Evidence (WOE) and Information value for each of the age groups. Interpret the above results and provide and provide a mathematical framework for modelling the above. Goods 646 633 705 842 746 312 3884

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter9: Stocks And Their Valuation
Section: Chapter Questions
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Consider the following questions on credit risk

 

a) Describe the Basel II framework and its drawbacks

 

b) Sean who is a credit risk analyst has come up with the following counts of good andbadcredit score models.

1)
Age Group
18-23
24-29
30-36
37-44
45-53
54+
Before running the model, Sean needs your help with the following issues.
Find the Weight of Evidence (WOE) and Information value for each of the age groups.
Interpret the above results and provide and provide a mathematical framework for
modelling the above.
ii)
Count Bads Goods
684
38
646
659
26
633
724
19
705
861
19
842
757
11
746
315
3
312
Grand Total 4000 116
3884
Transcribed Image Text:1) Age Group 18-23 24-29 30-36 37-44 45-53 54+ Before running the model, Sean needs your help with the following issues. Find the Weight of Evidence (WOE) and Information value for each of the age groups. Interpret the above results and provide and provide a mathematical framework for modelling the above. ii) Count Bads Goods 684 38 646 659 26 633 724 19 705 861 19 842 757 11 746 315 3 312 Grand Total 4000 116 3884
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