Universal bank launched a campaign to promote personal loars to its customers. In order to better understand customers' decision, the bank built a logistic regression model to predict the probability of a customer accepting personal loan offered by the bank. Define p= P(Personal. Loan = 1) odda The model with estimated coefficients is: log(odds)- -12.6806 - 0.0369 x Age + 0.0491 x Experience + 0.0013 x Income +0.5435 x Family + 0.2166 x CCAvg + 4.2681 x EducationGraduate + 4.4408 x EducationProfessional + 0.0015 x Mortgage - 1.1457 x Securities. Account + 4.5856 x CD. Account -0.8588 x Online - 1.2514 x CreditCard Descriptions of the variables in the model Personal. Loan: Coded as 1 if customer responded to the last personal loan campaign Age: Customer's age in completed years Experience: Number of years of professional experience Income: Annual incomes of the customer in $000s) Family: Family size of the customer of the CCAvg: Average spending on credit cards per month in $000s) Education: Education level (Undergrad, Graduate, or Professional) Mortgage: Value of house mortgage if any in S000 Securities Account: Coded as 1 if customer has securities account with Universal Bank CDAccount: Coded as 1if customer has certificate of deposit (CD) account with Universal Bank Online: Coded as 1 if customer uses Internet banking facilities CreditCard: Coded as 1 if customer uses credit card issued by Universal Bank Round your answers to 4 digits after the decimal point. The coefficient (+0.0613) of Income means: holding all else equal, every $1000 increase in annual income increases or decreases?) the odds of a customer accepting Universal Bank's personal loan offer by a multiplicative factor of The coefficient (-1.1457) of Security Account means: holding all else equal, having a security account with Universal Bank (increases or decreases?) the odds of a customer accepting Universal Bank's personal loan offer by a multiplicative factor of The coefficient (+4.4408) of EducationProfessional means: holding all else equal, having professional education Gincreases or decreases?) the odds of a customer accepting Universal Bank's personal loan offer by a multiplicative factor of .compared to having undergrad education.

Universal bank launched a campaign to promote personal loars to its customers. In order to better understand customers' decision, the bank built a logistic regression model to predict the probability of a customer accepting personal loan offered by the bank. Define p= P(Personal. Loan = 1) odda The model with estimated coefficients is: log(odds)- -12.6806 - 0.0369 x Age + 0.0491 x Experience + 0.0013 x Income +0.5435 x Family + 0.2166 x CCAvg + 4.2681 x EducationGraduate + 4.4408 x EducationProfessional + 0.0015 x Mortgage - 1.1457 x Securities. Account + 4.5856 x CD. Account -0.8588 x Online - 1.2514 x CreditCard Descriptions of the variables in the model Personal. Loan: Coded as 1 if customer responded to the last personal loan campaign Age: Customer's age in completed years Experience: Number of years of professional experience Income: Annual incomes of the customer in $000s) Family: Family size of the customer of the CCAvg: Average spending on credit cards per month in $000s) Education: Education level (Undergrad, Graduate, or Professional) Mortgage: Value of house mortgage if any in S000 Securities Account: Coded as 1 if customer has securities account with Universal Bank CDAccount: Coded as 1if customer has certificate of deposit (CD) account with Universal Bank Online: Coded as 1 if customer uses Internet banking facilities CreditCard: Coded as 1 if customer uses credit card issued by Universal Bank Round your answers to 4 digits after the decimal point. The coefficient (+0.0613) of Income means: holding all else equal, every $1000 increase in annual income increases or decreases?) the odds of a customer accepting Universal Bank's personal loan offer by a multiplicative factor of The coefficient (-1.1457) of Security Account means: holding all else equal, having a security account with Universal Bank (increases or decreases?) the odds of a customer accepting Universal Bank's personal loan offer by a multiplicative factor of The coefficient (+4.4408) of EducationProfessional means: holding all else equal, having professional education Gincreases or decreases?) the odds of a customer accepting Universal Bank's personal loan offer by a multiplicative factor of .compared to having undergrad education.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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