Handbook of Statistical Analysis and Data Mining Applications

Tutorial M

Profit Analysis of the German Credit Data Using SAS-EM Version 5.3

Chamont Wang, Ph.D.

Edited by Gary Miner, Ph.D.

OUTLINE

Introduction

Modeling Strategy

SAS-EM 5.3 Interface

A Primer of SAS-EM Predictive Modeling

Advanced Techniques of Predictive Modeling

Micro-Target the Profitable Customers

Appendix

Introduction

In this tutorial, we will approach the German credit data from a cost/profit perspective. Specifically, we assume that a correct decision of the bank would result in 35% of the profit at the end of a specific period, say 3–5 years. Here, a correct decision means that the bank predicts that a customer’s credit is in good standing (and hence would obtain the loan), and the customer indeed has good credit. On the other ...