ROC Analysis: Area Under Curve (AUC)

In this lesson on ROC analysis, we explore the Area Under the ROC Curve (AUC), its probabilistic interpretation, and how to estimate it using empirical data. Using a mortgage-default example, we calculate an AUC of 0.7375 and identify the threshold that minimizes the total error rate. For statistical consultations, tuition, or lectures, please contact Prof. Sarath Banneheka at sarath.banneheka@gmail.com