Redlining in Internet Access and notes on Regression Models

This is the definition of Redlining Citation- The AD FREE Wikepedia-

Redlining is the practice of denying, or increasing the cost of, services such as bankinginsuranceaccess to jobs,[2]access to health care,[3] or even supermarkets[4] to residents in certain, often racially determined,[5] areas. The term “redlining” was coined in the late 1960s by community activists in Chicago.[citation needed] It describes the practice of marking a red line on a map to delineate the area where banks would not invest; later the term was applied todiscrimination against a particular group of people (usually by race or sex) no matter the geography.

As of today, redlining in financial services is outlawed by the Fair Credit Lending Act which prohibits using variables in regression models which end up red-lining districts. However as far as 2005, redlining was used in Auto Insurance by using suitably disguised zip9 variables ( I carried data for 55 million American Citizens and 88 million Accounts for a major North American Automotive Insurance provider as part of an offshoring contract from Atlanta, GA  in 2005).

It exists today by informal arrangements between internet service providers who carve up territories and districts. Internet access redlining is still not illegal. This is especially true in Austin ( I traveled there as a consultant last year) and Knoxville, Tennessee where I still study as a grad student.

Neither are suitably proprietary insurance and health care claim denial models used for minimizing litigation risk. Litigation risk minimization is the next level of retail logistic regression model just as predictive modeling used by political consultants during elections.

Author: Ajay Ohri

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