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A bank uses the following logistic regression to evaluate the probability that an existing customer will apply for a new credit card in the next
A bank uses the following logistic regression to evaluate the probability that an existing customer will apply for a new credit card in the next 6 months. This probability is denoted by NewCreditPr. The BankingDummy is 1 if a customer has other banking accounts and 0 otherwise. Balance is the total balance in a customer's credit card account. NumCredAccounts is the number of credit card accounts a customer already has and Age is the customer's age. All the coefficients are significant. log(NewCreditPr/(1-NewCreditPr)) = -4 + 0.2BankingDummy - 0.01Age + 0.0002Balance - 0.1NumCredAccounts + 0.0003Balance NumCredAccounts What is the predicted new credit probability if a customer's total balance is $5,000, has 2 different credit accounts, another banking account, and her age is 55? A. 2.8% B. 5.7% C. 6.1% D. 6.5%
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