Problem bank

Problem 234 of 333MediumStatisticsP234

AUC from a handful of scores

  1. A default model scores ten loans. The four that defaulted got 0.95, 0.70, 0.65 and 0.30. The six that did not got 0.80, 0.60, 0.50, 0.20, 0.10 and 0.05. Compute the AUC, state what it means as a probability, and say what happens to it if you square every score.