Applicant Income for a Financial Entity

Requirements Clarification & Assessment

1. Objective:

   • Determine if an applicant earns above or below $50,000 annually.

2. Data Availability:

   • Identify if the institution has access to reliable financial documents such as pay slips, W2 forms, tax returns, or any other income verification documents.
   • Assess the availability of historical data from existing clients, including income, education, occupation, and other relevant demographic information.

3. Data Quality:

   • Ensure the data is clean, with minimal missing values and errors.
   • Determine if the data is updated and reflects current economic conditions.

4. Feature Selection:

   • Identify potential features that can be used to predict income, such as age, education level, occupation, marital status, and credit scores.

5. Modeling Objective:

   • Establish whether the goal is to classify applicants into income brackets or predict exact income amounts.

6. Accuracy Requirements:

   • Define the acceptable accuracy level for predictions (e.g., 80% accuracy).

7. Regulatory Compliance:

   • Ensure that the data usage complies with data protection regulations such as GDPR or CCPA.