Part 7/12:

• An illustrative example involves credit card balance transfer behavior: the conventional wisdom was that transferring balances indicated higher risk. Surprisingly, analysis revealed these customers were often lower risk borrowers, transferring balances to repay more efficiently. Capital One exploited this insight for years, gaining market share.

This underscores the importance of curiosity, skepticism, and intuition in data analysis—qualities essential for uncovering transformative insights.

The Importance of Explainability and Business Understanding

Models and algorithms are only as valuable as our comprehension of their logic:

• The speaker criticizes the reliance on complex models without understanding why specific features influence outcomes.