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Using data to make an optimized decision

Using data to make an optimized decision - Microsoft Excel Tutorial

From the course: AI in Business Essential Training

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Using data to make an optimized decision

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- [Instructor] Now, one application for data analytics tools like regressions is to go through and make business decisions. And this is where optimization starts to become particularly important. I'm in the 0203 begin Excel file. Now, what I've done is taken our very basic regression output from the regression we ran previously to analyze the likelihood of a charge-off based on different variables: the total amount of the loan, the debt to income ratio, housing status, and the monthly income of the borrower. What I want to do now is go through and make a loan decision on an automated basis. To do that, I've gone through and multiplied my coefficient values from the regression by the relevant values for each borrower. In essence, this is the equivalent of starting a training dataset for an AI algorithm. So my initial loan score if you will for this first borrower is 0.211. The higher the loan score, the better we are, the happier we are and the more likely that person is to pay back…

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