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A risk manager is evaluating the performance of the default prediction model for a sample of corporate loans in particular town. The model predicts that the borrower will default or not default in the following year, which is then compared with the outturn as summarized in the following table, calculate the precision and accuracy for the model.
| Predicted result | No default | Default |
|---|---|---|
| Actual result | ||
| No default | 592 | 6 |
| Default | 61 | 3 |