This is a simple approach to charge-off and revenue from lenders point of view.
Different groups of population might be a part of different lending segment. For the purpose of this study it is going to be used different charge off % of all loans provided as a main criterium to define segments. It has also to be stated, that it is not true, that people with higher salary or certain race are going to be less risk and people from different race or sex are going to be riskier. All depends on the segmentation and assessment to loan underwriting. Therefore, groups to be selected are random.