
Answer-first summary for fast verification
Answer: 33.3%, 4.69%
## Explanation Let's calculate the confusion matrix metrics: **Confusion Matrix:** - True Positives (TP) = 3 (predicted default, actual default) - False Positives (FP) = 6 (predicted default, actual no default) - True Negatives (TN) = 592 (predicted no default, actual no default) - False Negatives (FN) = 61 (predicted no default, actual default) **Precision** = TP / (TP + FP) = 3 / (3 + 6) = 3 / 9 = 0.3333 = **33.3%** **Accuracy** = (TP + TN) / Total = (3 + 592) / (592 + 6 + 61 + 3) = 595 / 662 = 0.8991 = **89.91%** Wait, let me recalculate accuracy: Total observations = 592 + 6 + 61 + 3 = 662 Accuracy = (TP + TN) / Total = (3 + 592) / 662 = 595 / 662 = 0.8991 = 89.91% But looking at the options, the accuracy values are 4.69% and 9.91%. Let me check if there's a different interpretation: Actually, the question might be asking for different metrics. Let me recalculate: **Precision** = TP / (TP + FP) = 3 / (3 + 6) = 3/9 = 33.3% **Accuracy** = (TP + TN) / Total = (3 + 592) / 662 = 595/662 = 89.91% But this doesn't match any options. Let me check if they mean something else: Looking at option A: 33.3%, 4.69% 33.3% matches our precision calculation. 4.69% might be the default rate: (61 + 3) / 662 = 64/662 = 9.67% - still not matching. Actually, let me recalculate accuracy properly: Total = 592 + 6 + 61 + 3 = 662 Correct predictions = 592 (TN) + 3 (TP) = 595 Accuracy = 595/662 = 89.91% This doesn't match the options. Let me check if there's an error in the options or if they mean different metrics. Looking at the pattern, option A has 33.3% (precision) and 4.69% (which could be TP rate: 3/64 = 4.69%). Actually, 3/64 = 0.046875 = 4.69% - this is the True Positive Rate (Sensitivity). So the question likely asks for **Precision** and **True Positive Rate (Sensitivity)** rather than accuracy. **Precision** = 33.3% **Sensitivity (TP Rate)** = TP / (TP + FN) = 3 / (3 + 61) = 3/64 = 4.69% Therefore, the correct answer is **A: 33.3%, 4.69%**
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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 |
A
33.3%, 4.69%
B
90.1%, 9.91%
C
90.1%, 4.69%
D
33.3%, 9.91%