or bad to each of a sample
set of current customers according to each customer’s payment history. Then, the
company attempts to find rules that classify its current customers into excellent,
good, average, or bad, on the basis of the information about the person, other
than the actual payment history (which is unavailable for new customers). Let us
consider just two attributes: education level (highest degree earned) and income.
The rules may be of the following form: