Compared to our boosted model, this version makes more mistakes overall: 37 percent error here versus 18 percent in the boosted case. However, the types of mistakes are very different. Where the previous models incorrectly classified only 42 and 61 percent of defaults correctly, in this model, 79 percent of the actual defaults were predicted to be non-defaults. This trade resulting in a reduction of false negatives at the expense of increasing false positives may be acceptable if our cost
estimates were accurate.