discussion question 1 21

A banking company wants to build a neural network to predict who will default on 30-year fixed-rate home mortgage loans. Historically, approximately 2.5% of individuals default. Given the small percentage of defaulters, what are some of the problems that may be encountered when fitting a neural network model? Is this a problem specific to neural networks, or is this a problem other modeling techniques have as well? What are some of the solutions that can be implemented to overcome the insufficient minority class problem? Provide two or three examples.

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.