Does a decision need a complex model?

0.674Public lending data

The simpler model that matched

for the readable model, against 0.667 for gradient boosting (AUC)

What was observed

Two models built on the same loans: a scorecard style logistic regression and gradient boosting.

What a generic approach says

Use the more complex model.

What the engine read

The logistic regression scored 0.674 against 0.667: the readable model matched the complex one.

What it meant for the decision

The readable model was chosen, so the explanation is the model itself.

Figures are reproduced from Luminnovate's research records. Data sources are available on request; methods are proprietary.