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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

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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

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