Following the example done in the lecture video, take the scenario presented in the Bank Loan case study. For this scenario, come up with the Business opportunity, Business Objectives, Business Questions and Data Analytic questions.

BANK LOAN CASE STUDY SCENARIO

This case study concerns a bank's efforts to reduce the rate of loan defaults. A loan officer at a bank needs to be able to identify characteristics that are indicative of people who are likely to default on loans and use those characteristics to identify good and bad credit risks. The loan officer also needs to be able to better quantify an individuals credit risk level.

Information on 850 past and prospective customers in contained in bank loan. The first 700 cases are customers who were previously given loans. The last 150 cases are prospective customers that the bank needs to assess.

The data set includes the following variables:

Age: customer age in years.

College: an indicator of whether the customer has a college education

Employment: years that the customer has been with his/her current employer

Address: years that the customer has lived at his/her current address

Income: household annual income (in $1,000)

Debt _to _Income: debt to income ratio (x100)

Credit _Debt: credit card debt (in $1,000)

Other _Debt: other debt (in $1,000)

Risk _Score: Credit risk score (the higher the score, the more risky)

Default _Indicator: an indicator of whether the customer had previously defaulted