Using Decision Trees to Evaluate Credit Risk

A bank maintains a database of historic information on customers who have taken out loans from the bank, including whether or not they repaid the loans or defaulted. Using a tree model, you can analyze the characteristics of the two groups of customers and build models to predict the likelihood that loan applicants will default on their loans.

To know more, go to Professional Edition> Decision Trees>Creating Decision Trees

The credit data are stored in tree_credit.sav. See the topic Sample Files for more information.

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