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

Question 51

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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 logistic model where y = a binary response variable with value of 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 %) x<sub>2</sub> = the ratio of the total debt to the annual income (in %) 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. Assuming the debt ratio is 30%,what is the range of values for the balance ratio that yields the fair rating? To estimate this probability,she decided to use the logistic model 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 of 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 %) x<sub>2</sub> = the ratio of the total debt to the annual income (in %) 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. Assuming the debt ratio is 30%,what is the range of values for the balance ratio that yields the fair rating? where
y = a binary response variable with value of 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 %)
x2 = the ratio of the total debt to the annual income (in %)
Using Minitab on the sample data,she arrived at the following estimates: 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 of 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 %) x<sub>2</sub> = the ratio of the total debt to the annual income (in %) 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. Assuming the debt ratio is 30%,what is the range of values for the balance ratio that yields the fair rating? Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients.
Assuming the debt ratio is 30%,what is the range of values for the balance ratio that yields the fair rating?

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The estimated logistic model i...

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