anvithachaluvadi / credit-risk_module12challenge

I will use various techniques to train and evaluate models with imbalanced classes.

Module 12 Challenge: Credit Risk

Anvitha Chaluvadi

Background

Credit risk poses a classification problem that’s inherently imbalanced. The reason is that healthy loans easily outnumber risky loans. For this Challenge, you’ll use various techniques to train and evaluate models with imbalanced classes. You’ll use a dataset of historical lending activity from a peer-to-peer lending services company to build a model that can identify the creditworthiness of borrowers.

What You’re Creating

Using your knowledge of the imbalanced-learn library, you’ll use a logistic regression model to compare two versions of the dataset. First, you’ll use the original dataset. Second, you’ll resample the data by using the RandomOverSampler module from the imbalanced-learn library.

For both cases, you’ll get the count of the target classes, train a logistic regression classifier, calculate the balanced accuracy score, generate a confusion matrix, and generate a classification report.