
40 ◾ Sumana Sharma and Kweku-Muata Osei-Bryson
Continuing with the example of Global Credit, here is how the DM objective
can be formulated:
e business objective was set up as improving approval rates of subprime custom-
ers by 5%, while maintaining better or similar loss rates. e business and technical per-
sonnel involved in the project realize that this is a prediction problem, which requires
the creation of a classication model that improves the rank ordering of credit card
applicants as compared to the existing model. e DM objective, therefore, becomes
Table 3.4 (Continued ) Creation of Well-Formulated Data Mining Objectives
Type of
L