Câu 34: RAI: Risk and Artificial Intelligence

An analyst is training a model for classifying consumer loans into two categories: no-default (0) and default (1). The training data contains a mix of defaulted loans (1% of total loans) and non-defaulted loans (99% of total loans). The analyst determines that this is an unbalanced data set and is looking for solutions to address this issue. Which approach would be appropriate to handle this situation?

1. A. Randomly sample data to create a smaller data set for training purposes.
2. B. Use a higher penalty for non-defaulted loans in the cost function used for fitting the model.
3. C. Train the model with available data, since that reflects the actual default experience.
4. D. Oversample the defaulted loans to increase its proportion in the training data. — đáp án hiện tại