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Finance 1: The National Bank of Fort Worth, Texas, wants to examine methods for predicting sub-par payment performance on loans. It has data on unsecured

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Finance 1: The National Bank of Fort Worth, Texas, wants to examine methods for predicting sub-par payment performance on loans. It has data on unsecured consumer loans made over a 3-day period in October 2016 with a final maturity of 2 years. The data, which have been transformed to provide confidentiality, include the following. PASTDUE: Coded as 1 if the loan payment is past due and 0 if the loan is settled (i.e., currently paid in full). CBSCORE: Credit score generated by the CSC Credit Reporting Agency. Values range from 400 to 804, with higher values indicating a better credit rating. DEBT: This is a debt ratio calculated by taking required monthly payments on all debt and dividing it by the gross monthly income of the applicant and co-applicant. This ratio represents the amount of the applicant's income that will go toward repayment of debt. Values range between 0 and 99. GROSSINC: Gross monthly income of the applicant and co-applicant (Measured in hundreds of U.S. dollars). LOANAMT: Loan amount in USD (Measured in thousands of U.S. dollars). You have been asked to examine the feasibility of predicting past-due loan payment. THE RAW DATA FOR THIS QUESTION ARE **NOT** AVAILABLE TO YOU. Use the output below to answer the following questions. Logistic Regression Model Dependent Variable: PASTDUE Dependent Variable Information Variable Value Coding Frequency Percent PASTDUE 150 43.10 (Event) 0 0 198 56.90 Total (N Used 348 100.00 Global Test for All Slopes: BETA = 0 Test Chi-Square p-value Likelihood Ratio 63.060 4

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