four quantities for this bank (use R to do all the intermediate calculations; show your final answers to four decimal places): the logit, the odds, the probability of being financially weak, and the classification of the bank (use cutoff = 0.5). C. The cutoff value of 0.5 is used in conjunction with the probability of being financially weak. Compute the threshold that should be used if we want to make a classification based on the odds of being financially weak, and the threshold for the corresponding logit. d. Interpret the estimated coefficient for the total loans & leases to total assets ratio (TotLns&Lses/Assets) in terms of the odds of being financially weak. e. When a bank that is in poor financial condition is misclassified as financially strong, the misclassification cost is much higher than when a financially strong bank is misclassified as weak. To minimize the expected cost of misclassification, should the cutoff value for classification (which is currently at 0.5) be increased or decreased? Problem 10.2 Identifying Good System Administrators. A management consultant is studying the roles played by experience and training in a system administrator's ability to complete a set of tasks in a specified amount of time. In particular, she is interested in discriminating between administrators who are able to complete given tasks within a specified time and those who are not. Data are collected on the performance of 75 randomly selected administrators. They are stored in the file SystemAdministrators.csv. The variable Experience measures months of full-time system administrator experience, while Training measures the number of relevant training credits. The outcome variable Completed is either Yes or No, according to whether or not the administrator completed the tasks. a. Create a scatter plot of Experience vs. Training using color or symbol to distinguish programmers who completed the task from those who did not complete it. Which predictor(s) appear(s) potentially useful for classifying task completion? b. Run a logistic regression model with both predictors using the entire dataset as training data. Among those who completed the task, what is the percentage of programmers incorrectly classified as failing to complete the task? C. To decrease the percentage in part (b), should the cutoff probability be increased or decreased? d. How much experience must be accumulated by a programmer with 4 years of training before his or her estimated probability of completing the task exceeds 0.5? Problem 10.3 Competitive Auctions on eBay.com. The file eBayAuctions.cav contains information on 1972 auctions transacted on eBay.com during May-June 2004. The goal is to use these data to build a model that will distinguish competitive auctions from noncompetitive ones. A competitive