The following decision tree has been created for loan approval. a. Convert this
ID: 3819357 • Letter: T
Question
The following decision tree has been created for loan approval.
a. Convert this tree to if then rules (0.5)
b. Using the following testing data:
i. Predict the class of each record (0.25)
Income range of applicant
Criminal record
Years in present job
Makes credit card payments
Class
Prediction
1
$25K
no
6
no
loan
2
$40K
yes
2
yes
loan
3
$80K
no
7
yes
No loan
4
$55K
no
8
no
No loan
ii. Calculate the accuracy of this model. (0.25)
iii. Interpret the obtained result (0.25)
iii. How we can improve the performance of the obtained model? (0.25)
Income range of applicant
Criminal record
Years in present job
Makes credit card payments
Class
Prediction
1
$25K
no
6
no
loan
2
$40K
yes
2
yes
loan
3
$80K
no
7
yes
No loan
4
$55K
no
8
no
No loan
$30K. Criminal record? ye3 Income range of applicant? $30-70K Years in present job? 1 1-5 Makes credit card payments? Criminal record?Explanation / Answer
a. IF THEN Rules
GET INCOME_RANGE_OF_APPLICANT
IF(INCOME_RANGE_OF_APPLICANT < $30K) THEN
IF(CRIMINAL_RECORD Not Found) THEN
APPROVE 'LOAN'
ELSE
REJECT 'LOAN'
ELSE IF(INCOME_RANGE_OF_APPLICANT >= $30K && INCOME_RANGE_OF_APPLICANT < $70K) THEN
IF(YEARS IN PRESENT JOB < 1) THEN
REJECT 'LOAN'
ELSE IF(YEARS IN PRESENT JOB >= 1 && YEARS IN PRESENT JOB <= 5) THEN
IF(MAKES CREDIT CARD PAYMENTS == YES) THEN
APPROVE 'LOAN'
ELSE IF(MAKES CREDIT CARD PAYMENTS == NO) THEN
REJECT 'LOAN'
ELSE IF(YEARS IN PRESENT JOB > 5)
APPROVE 'LOAN'
ELSE IF(INCOME_RANGE_OF_APPLICANT > $70K) THEN
IF(CRIMINAL_RECORD Not Found) THEN
APPROVE 'LOAN'
ELSE
REJECT 'Loan'
b. i. The prediction for the table followings are NO LOAN, LOAN, LOAN, LOAN
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