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Use the data ( a sample of 2 0 banks ) given below to answer the following question ( s ) . table [
Use the data a sample of banks given below to answer the following questions
tablefinancial,TotCapAssetTotExpAssetTotLnsLsesAssetObscondition,s
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 valuesweak or stron according to the financial condition of the bank. The predictors are two ratios used in the financial analysis of banks: TotLns&LsesAssets is the ratio of total loans and leases to total a and TotExpAssets is the ratio of total expenses to total assets. The target is to use the two ratios for classifying the financial condition of a new bank.
Run a logistic regression on the entire dataset that models the status of a bank as a function of the two financial measures provided. Specify the success class as weak this is similar to creating a dummy that is for financially weak banks and otherwise and use the default cutoff value of
a Write the estimated equation that associates the financial condition of a bank with its two predictors in three formats:
i logit as a function of the predictors:
ii odds as a function of the predictors:
iii. probability as a function of the predictors:
b Consider a new bank whose total loans and leasesassets ratio and total expensesassets ratio From your logistic regression model, estimate the following four quantities fo this bank: the logit the odds the probability of being financially weak
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