Create scatterplots using the data in the spreadsheet linked above and display the equation for the regression line. What is the equation for the regression line that predicts the probability of default in percent using credit score as the explanatory variable? Ý = -0.155 x + ( 111.603 ) What is the interpretation of the slope? Decrease in the probability of default as credit score increases What is the interpretation of the intercept? Pick Credit score when probability of default is 0 No practical interpretation Probability of default when credit score is 0

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Please answer the bottom question. What is the interpretation of the intercept?
ome> 2.3: Least squares method
Click this link to download the spreadsheet for use in this activity.
Jump to level 1
2
Create scatterplots using the data in the spreadsheet linked above and display the
equation for the regression line.
What is the equation for the regression line that predicts the probability of default in
percent using credit score as the explanatory variable?
Ý = -0.155
x + ( 111.603
What is the interpretation of the slope?
Decrease in the probability of default as credit score increases
What is the interpretation of the intercept?
Pick
Credit score when probability of default is 0
No practical interpretation
Probability of default when credit score is 0
Transcribed Image Text:ome> 2.3: Least squares method Click this link to download the spreadsheet for use in this activity. Jump to level 1 2 Create scatterplots using the data in the spreadsheet linked above and display the equation for the regression line. What is the equation for the regression line that predicts the probability of default in percent using credit score as the explanatory variable? Ý = -0.155 x + ( 111.603 What is the interpretation of the slope? Decrease in the probability of default as credit score increases What is the interpretation of the intercept? Pick Credit score when probability of default is 0 No practical interpretation Probability of default when credit score is 0
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1 Credit score
Probability of default
610
16.7
Field: Credit score and Field: Probability of
default appear highly correlated.
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620
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660
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700
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Credit score
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ue vs income
Fauityvs FICO
Debt to .
(+
Probability of default
Transcribed Image Text:Search File Home Insert Page Layout Formulas Data Review View Help Acrobat - 10 A A Arial 22 Wrap Text General Paste BIU $ - % 9 8 8 Conditional Merge & Center Formatting v Clipboard Font Alignment Number D1 E G 1 Credit score Probability of default 610 16.7 Field: Credit score and Field: Probability of default appear highly correlated. 3 645 9.1 685 4.8 705 3.2 30 540 28 25 7 580 23 20 8. 620 16 15 660 9. 10 700 4.4 10 11 12 13 100 200 300 400 500 600 700 800 14 Credit score 15 16 17 18 ue vs income Fauityvs FICO Debt to . (+ Probability of default
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