Question
Question 1 7pts Exhibit 1: The file Banks.jmp download includes data on a sample of 20 banks. The '' Financial Condition '' column records the
Question 1
7pts
Exhibit 1:The fileBanks.jmp
download
includes data on a sample of 20 banks. The ''Financial Condition'' column records the judgment of an expert on the financial condition of each bank. This dependent variable takes one of two possible values---weak or strong---according to the financial condition of the bank. The predictors are two ratios used in the financial analysis of banks:TotLns&Lses/Assetsis the ratio of total loans and leases to total assets andTotExp/Assetsis the ratio of total expenses to total assets. The goal is to use the two ratios for classifying the financial condition of a new bank.
- Use the "Value Order"in "Column Properties" of the variable "Financial Condition (right-click on the column "Financial Condition"and select "Column Info>Column Properties>Value Order")and specify the success class as "Weak" (i.e., move the class "Weak" to the top of the value list by using the arrows on the right and click "Apply>OK").
- Run a logistic regression model ("Analyze>Fit Model") that models the "Financial Condition"of a bank as a function of the two financial measures (i.e.TotLns&Lses/AssetsandTotExp/Assets) provided (Make sure that target level is "Weak").
- Save the probability formula (red triangle option) to the data table andsave the data table.
What is the intercept of Logit (i.e.Lin[Weak])? (Hint: Check the section entitled "Parameter Estimates" in the output report)
Group of answer choices
-14.18755183
9.1732146
79.963941181
6.415382
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started