In SAS Studio make a new file approved_loans that is based on the approved file you created in task 1.

In this file: create a field Loan_Cat that is based on the following conditions

LoanAmt < 100000 Less than $100,000

LoanAmt >=100000 and < 300000 $100-299,999

LoanAmt >=300000 and < 750000 $300-749,999

LoanAmt >=750000 $750,000 and Higher

create a new field Risk that is based on the following conditions

Equity < 100000 or CreditScore < 600 = 1 Equity between 100000 and 500000 or CreditScore between 600 and 700 = 2

Otherwise it should equal 3