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hello.. can you send me some references for the calculation of earn and lose money, i search about it but i get for some performance measures like ACC and error and others thanks
I will duplicate my answer from personal message here, so may be it is useful for someone else.
There's not that much universal recipes out there, as such a calculation is very business-specific.
I can highly recommend you this book first: https://www.amazon.com/Data-Science-Business-Data-Analytic-Thinking/dp/1449361323 which is the best source on the topic of cost-centered approach to ML.
You can also have a look at couple of my presentations and a webinar where I have evaluated a real life example of cost calculation:
At the end, the most important thing underlying is how much a correct and incorrect prediction do cost for your business. Depending on an industry and a business model, this calculation might be either simple and straightforward, or arbitrary complex.
Specifically, for credit risk you have to answer this simple questions:
1) How much do I lose if a customer granted X amount of money do not pay it back?
2) Hom much do I lose if I reject a loan applikcation to a good customer?
3) How much do I earn if I give a loan of amount of X to a good customer and he pays it back?
hello @hanaabdalrahman - I'm sorry but your question is not able to be answered as written. Can you please provide more information as per the posting instructions: