deciding on wh the World Cup determine wh the human rig international with oppor
ID: 2908127 • Letter: D
Question
deciding on wh the World Cup determine wh the human rig international with opport for on loans. It has data on unsecured consumer loans made over a 3-day period in October 1994 with a final maturity of 2 years. The data, which have CBSCOREi Score generated by the CSC Credit Reporting Agency. Values range from 400 to 8390, vwith higher values indicating a better credit rating PASTDUE: Coded as 1 if the loan payment is past due and zero otherwise. DEBT: This is a debt ratio calculated by talking required monthly payments on all debt and dividing it by the gross monthly income GROSSINC LOANAMT Loan amount in USD. 5. Another occurred in of the colle Madness g done by t tourname Article: H march-m Use the computer output below to answer the questions below.) following questions. (Realize that you do not need the raw data in order to answer the Response Infornat fon aer value com (Emp o (event) Logistic Regression Table Predictor 10.6722000 2.0313700 5.253Explanation / Answer
The regression estiamtedequation is
P=10.6722-0.017068*CDSCORE -0.0043009*DEBT +0.0000569*GROSSINC +0.0001373*LOANANT
(a) the predicted probability that a loan with an associated credit score of 800, debt ratio of 80, gross monthly income of 1500 and loan amount of $10,000 will be past due
P=10.6722-0.017068*800 -0.0043009*80 +0.0000569*1500 +0.0001373*10,000
= -1.8679
To move back from the log odds scale to the odds scale you need an antilog, which for the natural logarithm, is an exponential function.
exp(-1.8679) = 0.15444
Now you need to convert from odds to probability.
0.15444/(1+0.15444) =0.13378
(b)
the predicted probability that a loan with an associated credit score of 600, debt ratio of 80, gross monthly income of 1500 and loan amount of $10,000 will be past due
P=10.6722-0.017068*600 -0.0043009*80 +0.0000569*1500 +0.0001373*10,000
= 1.5456
To move back from the log odds scale to the odds scale you need an antilog, which for the natural logarithm, is an exponential function.
exp(1.5456) = 4.6911
Now you need to convert from odds to probability.
4.6911/(1+4.6911) =0.8242
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