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  3. Credit Risk Modeling in Python

Exercise

Visualizing quantiles of acceptance

You know how quantile() works to compute a threshold, and you've seen an example of what it does to split the loans into accepted and rejected. What does this threshold look like for the test set, and how can you visualize it?

To check this, you can create a histogram of the probabilities and add a reference line for the threshold. With this, you can visually show where the threshold exists in the distribution.

The model predictions clf_gbt_preds have been loaded into the workspace.

Instructions

100 XP
  • Create a histogram of the predicted probabilities clf_gbt_preds.
  • Calculate the threshold for an acceptance rate of 85% using quantile(). Store this value as threshold.
  • Plot the histogram again, except this time add a reference line using .axvline().