ROC Curve N(mu,V) Financial rating distributions for repossessed (mu = 3) vs. paid in full (mu=5)

ROC Curve Demo
Will auto be repossessed ?
<-yes, Y=1, “event”, (H1) | (H0:) Y=0, “non-event”, no ->
Distributions of
financial responsibility rating for
Auto repossessed (left)
Auto loan paid off (right)
S
e
n
s
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t
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v
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t
y
<-Repossessed
Paid off->
1-specificity
(black proportion
to left of cutoff)
Cutoff for slide 1
(red proportion
to left of cutoff)
Sensitivity | Specificity
1-Specificity |