Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Explaining Adverse Actions in Credit Decisions Using Shapley
  Decomposition   When a financial institution declines an application for credit, an adverse
action (AA) is said to occur. The applicant is then entitled to an explanation
for the negative decision. This paper focuses on credit decisions based on a
predictive model for probability of default and proposes a methodology for AA
explanation. The problem involves identifying the important predictors
responsible for the negative decision and is straightforward when the
underlying model is additive. However, it becomes non-trivial even for linear
models with interactions. We consider models with low-order interactions and
develop a simple and intuitive approach based on first principles. We then show
how the methodology generalizes to the well-known Shapely decomposition and the
recently proposed concept of Baseline Shapley (B-Shap). Unlike other Shapley
techniques in the literature for local interpretability of machine learning
results, B-Shap is computationally tractable since it involves just function
evaluations. An illustrative case study is used to demonstrate the usefulness
of the method. The paper also discusses situations with highly correlated
predictors and desirable properties of fitted models in the credit-lending
context, such as monotonicity and continuity.

8
The categories of this paper are: hep-ex
37
The categories of this paper are: supr-con
24
The categories of this paper are: dg-ga
14
The categories of this paper are: math-ph
30
The categories of this paper are: q-alg
32
The categories of this paper are: atom-ph
21
The categories of this paper are: adap-org
2
The categories of this paper are: math
9
The categories of this paper are: nlin
10
The categories of this paper are: q-bio
19
The categories of this paper are: eess
11
The categories of this paper are: hep-lat
13
The categories of this paper are: quant-ph
12
The categories of this paper are: nucl-th
33
The categories of this paper are: plasm-ph
26
The categories of this paper are: bayes-an