LFD Book Forum  

Go Back   LFD Book Forum > Course Discussions > Online LFD course > Homework 5

Reply
 
Thread Tools Display Modes
  #1  
Old 08-12-2012, 12:11 AM
tzs29970 tzs29970 is offline
Invited Guest
 
Join Date: Apr 2012
Posts: 52
Default Telling the customer why he was denied credit

In lecture 10, the problem of how to satisfy the legal requirement of telling a credit applicant why he was denied was mentioned, since the customer and the law won't be satisfied with a statement that some parameter in some learning algorithm failed to meet a threshold.

I wonder if the bank could come up with a denial reason by fiddling the application data to find out what could be changed to make it pass. For instance, the bank could try raising the income on the application and if that turns it into an acceptance, report to the customer that he was denied for inadequate income.

Best, I think, would be for the bank to fiddle several factors, and then pick the one that requires the least change to reverse the outcome, and report that to the customer.
Reply With Quote
  #2  
Old 08-12-2012, 12:46 AM
yaser's Avatar
yaser yaser is offline
Caltech
 
Join Date: Aug 2009
Location: Pasadena, California, USA
Posts: 1,477
Default Re: Telling the customer why he was denied credit

Quote:
Originally Posted by tzs29970 View Post
In lecture 10, the problem of how to satisfy the legal requirement of telling a credit applicant why he was denied was mentioned, since the customer and the law won't be satisfied with a statement that some parameter in some learning algorithm failed to meet a threshold.

I wonder if the bank could come up with a denial reason by fiddling the application data to find out what could be changed to make it pass. For instance, the bank could try raising the income on the application and if that turns it into an acceptance, report to the customer that he was denied for inadequate income.

Best, I think, would be for the bank to fiddle several factors, and then pick the one that requires the least change to reverse the outcome, and report that to the customer.
Interesting idea. I don't know how this might work in legal terms.
__________________
Where everyone thinks alike, no one thinks very much
Reply With Quote
  #3  
Old 05-07-2013, 10:57 AM
mariovela mariovela is offline
Junior Member
 
Join Date: Apr 2012
Posts: 5
Default Re: Telling the customer why he was denied credit

This reminds me the concept of sensitivity analysis... is there a way to do a sensitivity analysis for the individual factors and compare them?? how much a change in x1 (or x2) impact Eout??
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -7. The time now is 04:03 PM.


Powered by vBulletin® Version 3.8.3
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
The contents of this forum are to be used ONLY by readers of the Learning From Data book by Yaser S. Abu-Mostafa, Malik Magdon-Ismail, and Hsuan-Tien Lin, and participants in the Learning From Data MOOC by Yaser S. Abu-Mostafa. No part of these contents is to be communicated or made accessible to ANY other person or entity.