Solved

Exhibit 17

Question 38

Essay

Exhibit 17.9.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. Exhibit 17.9.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 logistic model: , where, y = a binary response variable with value 1 corresponding to a default,and 0 to a no default, x<sub>1</sub> = the ratio of the credit card balance to the credit card limit (in percent), x<sub>2</sub> = the ratio of the total debt to the annual income (in percent). Using Minitab on the sample data,she arrived at the following estimates: Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients. Refer to Exhibit 17.9.What is the estimated logistic model? To estimate this probability,she decided to use the logistic model: Exhibit 17.9.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 logistic model: , where, y = a binary response variable with value 1 corresponding to a default,and 0 to a no default, x<sub>1</sub> = the ratio of the credit card balance to the credit card limit (in percent), x<sub>2</sub> = the ratio of the total debt to the annual income (in percent). Using Minitab on the sample data,she arrived at the following estimates: Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients. Refer to Exhibit 17.9.What is the estimated logistic model? ,
where,
y = a binary response variable with value 1 corresponding to a default,and 0 to a no default,
x1 = the ratio of the credit card balance to the credit card limit (in percent),
x2 = the ratio of the total debt to the annual income (in percent).
Using Minitab on the sample data,she arrived at the following estimates: Exhibit 17.9.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 logistic model: , where, y = a binary response variable with value 1 corresponding to a default,and 0 to a no default, x<sub>1</sub> = the ratio of the credit card balance to the credit card limit (in percent), x<sub>2</sub> = the ratio of the total debt to the annual income (in percent). Using Minitab on the sample data,she arrived at the following estimates: Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients. Refer to Exhibit 17.9.What is the estimated logistic model? Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.9.What is the estimated logistic model?

Correct Answer:

verifed

Verified

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

Related Questions

Q33: Exhibit 17.9.A bank manager is interested in

Q35: Exhibit 17.8.A realtor wants to predict and

Q36: Exhibit 17.7.To examine the differences between salaries

Q40: Exhibit 17.5.An over-the-counter drug manufacturer wants to

Q42: Consider the regression equation <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2339/.jpg" alt="Consider

Q43: Exhibit 17.8.A realtor wants to predict and

Q43: Exhibit 17.8.A realtor wants to predict and

Q74: If the number of dummy variables representing

Q97: For a linear regression model with a

Q110: The major advantage of a logistic model