Solved

A Bank Manager Is Interested in Assigning a Rating to the Holders

Question 60

Essay

A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank. The rating is based on the probability of defaulting on credit cards and is as follows. A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank. The rating is based on the probability of defaulting on credit cards and is as follows. To estimate this probability, she decided to use the logit model P = , where y = a binary response variable which is 1 if the credit card is in default and 0 otherwise x<sub>1</sub> = the ratio of the credit card balance to the credit card limit (in %) x<sub>2</sub> = the ratio of the total debt to the annual income (in %) The following output is obtained. Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients. What is the estimated logit model? To estimate this probability, she decided to use the logit model
P = A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank. The rating is based on the probability of defaulting on credit cards and is as follows. To estimate this probability, she decided to use the logit model P = , where y = a binary response variable which is 1 if the credit card is in default and 0 otherwise x<sub>1</sub> = the ratio of the credit card balance to the credit card limit (in %) x<sub>2</sub> = the ratio of the total debt to the annual income (in %) The following output is obtained. Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients. What is the estimated logit model? , where
y = a binary response variable which is 1 if the credit card is in default and 0 otherwise
x1 = the ratio of the credit card balance to the credit card limit (in %)
x2 = the ratio of the total debt to the annual income (in %)
The following output is obtained. A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank. The rating is based on the probability of defaulting on credit cards and is as follows. To estimate this probability, she decided to use the logit model P = , where y = a binary response variable which is 1 if the credit card is in default and 0 otherwise x<sub>1</sub> = the ratio of the credit card balance to the credit card limit (in %) x<sub>2</sub> = the ratio of the total debt to the annual income (in %) The following output is obtained. Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients. What is the estimated logit model? Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients.
What is the estimated logit model?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q55: Consider the following regression model: Humidity =

Q56: Consider the regression model y = β<sub>0

Q57: An over-the-counter drug manufacturer wants to examine

Q58: A researcher wants to examine how the

Q59: A bank manager is interested in assigning

Q61: In a model y = β<sub>0</sub> +

Q62: An over-the-counter drug manufacturer wants to examine

Q63: A researcher wants to examine how the

Q64: The number of dummy variables representing a

Q65: A medical researcher is interested in assessing