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A bank wants to understand better the details of customers who are likely to default a loan. In order to analyze this, the data from
A bank wants to understand better the details of customers who are likely to default a loan. In order to analyze this, the data from a random sample of 200 customers was obtained and a logistic regression was obtained to predict whether a customer will default the loan based on their average monthly balance and the gender of the customer. In the data table for the dummy variable Gender, 0 represents Male and 1 represents Female. Coefficients: Intercept (b0) 1.1812 Balance (b1) 0.0037 Gender (b2) 0.1333 Age (b3) 0.0322 6. Write the logistic equation using the coefficients provided above. 7. Use the logistic equation in #6 to estimate the probability of a female customer defaulting a loan who is 41 years old, and has a monthly average balance of $1325
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