Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help please [StatCrunch] @ | [Google] EN The Lending Club has collected data about its users who have borrowed money from them. Each loan they

Help please

image text in transcribed
[StatCrunch] @ | [Google] EN The Lending Club has collected data about its users who have borrowed money from them. Each loan they made is assigned an annual interest rate as a percentage (interest_rate), which is the dependent variable. In this problem, you will be using the variables below to see which ones may be related to the interest rate (interest_rate) variable: . state: The state where the borrower lives . employee_yrs: Number of years the employee has worked in their current job . term: The term of the loan, in months debt_to_income: the ratio of their total debt to their total income . num_cc_carry_bal: The number of credit cards the user has that currently carry/have a balance . loan_amount: The amount of money borrowed from the Lending Club total_income: The borrower's total income, after taxes [StatCrunch] ' | [Google] EN A) Which independent variable has the SECOND strongest POSITIVE correlation with the dependent/response variable? debt_to_income loan_amount total_income num_cc_carry_bal employee_yrs term interest_rate B) What is the p-value for the model that contains ALL the independent variables? Answer (Round to 4 decimal places) C) What is the value of the intercept for the model with the best adjusted R using the stepwise method? Answer (Round to 4 decimal places) ADD WORK: Add a screenshot of your output showing why you answered as you did for part C. Full credit on this part is dependent on submitted all proper work. D) Find the model with the overall best adjusted R' value. How many independent variables does it have? Answer = E) Find the best model (use adjusted R only) with only four independent variables. Then, predict what interest rate a user would have paid using only those values below that are relevant. o employee_yrs = 5 years o term = 60 months, o debt_to_income = 0.4 o num_cc_carry_bal = 0 cards o loan_amount = $8000 total_income = $310000 Choose the best value below. For your calculations, you should round your coefficients generated by StatCrunch to TWO decimal places. 9,018 9.618 8.818 12.218 10.818 ADD WORK: Add a screenshot or type up your calculations showing why you answered as you did for part E. Full credit on this part is dependent on submitted all proper work. Add work below. Please note that you are asked to put TWO things into this box. Add Work > Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

Students also viewed these Mathematics questions

Question

What was the influence of the individual experimenter?

Answered: 1 week ago