A Random Sample of 10,000 is selected, to show the variables that affect the default (bank default issue). The default variable is the variable to explain. In our sample we have two explanatory...


A Random Sample of 10,000 is selected, to show the variables that affect the<br>default (bank default issue). The default variable is the variable to explain.<br>In our sample we have two explanatory variables: student and balance.<br>V Default: Yes (or 1) if the customer defaults on his debt and No (or 0)<br>otherwise.<br>V student: Yes (or 1) if the client is a student and No (or 0) otherwise<br>V balance: average monthly amount of use of the credit card<br>V income: client's income<br>1) We start by considering a simple logistic regression model where we try<br>to explain default as a function of student.<br>a) Give the equation of the adjusted logistic model.<br>> Modele0 = glm(formula = default¨student,<br>family = binomial(link =
Modele0$coeff (Intercept) balance -3.50413 0.40489 "/>
Extracted text: A Random Sample of 10,000 is selected, to show the variables that affect the default (bank default issue). The default variable is the variable to explain. In our sample we have two explanatory variables: student and balance. V Default: Yes (or 1) if the customer defaults on his debt and No (or 0) otherwise. V student: Yes (or 1) if the client is a student and No (or 0) otherwise V balance: average monthly amount of use of the credit card V income: client's income 1) We start by considering a simple logistic regression model where we try to explain default as a function of student. a) Give the equation of the adjusted logistic model. > Modele0 = glm(formula = default¨student, family = binomial(link = "logit"), data = Default) > Modele0$coeff (Intercept) balance -3.50413 0.40489

Jun 09, 2022
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