6. If the bank did not have your model, or any other way of forecasting default, what is the maximum (break-even) price per event that the bank could theoretically pay for Eggertopia scores? In other words, what are Eggertopia’s scores’ absolute savings-per-event?
Hint: Calculate the difference between the cost-per-event at a 25% default rate, and the cost-per-event using Eggertopia scores
- $423
- $425
- $412
- $418