See excel sheet Q4 of the Excel file provided for this assignment. This Excel sheet is about the probability of accepting loan applications. If the bank accepts the customer loan application, it is shown by 1.

If the bank rejects the customer loan application, it is shown by 0. In the Excel sheet, the variable "actual" indicates the actual probability of accepting a customer loan application. The variable "prediction" is the output of the logistics regression model indicating the probability of loan application acceptance.

4.1. Considering the cut-off value of 60%, develop the confusion matrix. What insights we can get from this confusion matrix.

4.2. Considering the cut-off value of 60%, calculate sensitivity, specificity, class error, class o error, and overall model error. Interpret the results.

Data