Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Use discriminant analysis to classify the accompanying new records using only Credit Score and Years of Credit History as input variables.
Complete the following table.
(Round to four decimal places as needed.)
|
Homeowner
|
Credit Score
|
Years of Credit History
|
Revolving Balance
|
Revolving Utilization
|
Discriminant Score
|
Decision
|
|
|---|---|---|---|---|---|---|---|
|
Y
|
546
|
9
|
$21,000
|
15%
|
enter your response here
|
▼
Approve
Reject
|
|
|
N
|
630
|
1
|
$4,000
|
90%
|
enter your response here
|
▼
Approve
Reject
|
|
|
Y
|
574
|
6
|
$8,500
|
25%
|
enter your response here
|
▼
Reject
Approve
|
|
|
N
|
698
|
3
|
$16,300
|
70%
|
enter your response here
|
▼
Reject
Approve
|
|
|
N
|
668
|
12
|
$2,500
|
90%
|
enter your response here
|
▼
Approve
Reject
|
|
|
Y
|
743
|
4
|
$16,700
|
18%
|
enter your response here
|
▼
Approve
Reject
|
|
Homeowner
|
Credit Score
|
Years of Credit History
|
Revolving Balance
|
Revolving Utilization
|
Decision
|
|
|---|---|---|---|---|---|---|
|
Y
|
625
|
20
|
$11,320
|
25%
|
Approve
|
|
|
Y
|
573
|
9
|
$7,200
|
70%
|
Reject
|
|
|
Y
|
677
|
11
|
$20,000
|
55%
|
Approve
|
|
|
N
|
625
|
15
|
$12,800
|
65%
|
Reject
|
|
|
N
|
527
|
12
|
$5,700
|
75%
|
Reject
|
|
|
Y
|
795
|
22
|
$9,000
|
12%
|
Approve
|
|
|
N
|
733
|
7
|
$35,200
|
20%
|
Approve
|
|
|
N
|
620
|
5
|
$22,800
|
62%
|
Reject
|
|
|
Y
|
591
|
17
|
$16,500
|
50%
|
Reject
|
|
|
Y
|
660
|
24
|
$9,200
|
35%
|
Approve
|
|
|
Y
|
700
|
19
|
$22,000
|
18%
|
Approve
|
|
|
Y
|
500
|
16
|
$12,500
|
83%
|
Reject
|
|
|
Y
|
565
|
6
|
$7,700
|
70%
|
Reject
|
|
|
N
|
620
|
3
|
$37,400
|
87%
|
Reject
|
|
|
Y
|
774
|
13
|
$6,100
|
7%
|
Approve
|
|
|
Y
|
802
|
10
|
$10,500
|
5%
|
Approve
|
|
|
N
|
640
|
7
|
$17,300
|
59%
|
Reject
|
|
|
N
|
523
|
14
|
$27,000
|
79%
|
Reject
|
|
|
Y
|
811
|
20
|
$13,400
|
3%
|
Approve
|
|
|
N
|
763
|
2
|
$11,200
|
70%
|
Reject
|
|
|
N
|
555
|
4
|
$2,500
|
100%
|
Reject
|
|
|
N
|
617
|
9
|
$8,400
|
34%
|
Reject
|
|
|
Y
|
642
|
13
|
$16,000
|
25%
|
Approve
|
|
|
N
|
688
|
3
|
$3,300
|
11%
|
Approve
|
|
|
Y
|
649
|
12
|
$7,500
|
5%
|
Approve
|
|
|
Y
|
695
|
15
|
$20,300
|
22%
|
Approve
|
|
|
Y
|
701
|
9
|
$11,700
|
15%
|
Approve
|
|
|
N
|
635
|
7
|
$29,100
|
85%
|
Reject
|
|
|
N
|
507
|
2
|
$2,000
|
100%
|
Reject
|
|
|
Y
|
677
|
12
|
$7,600
|
9%
|
Approve
|
|
|
N
|
485
|
5
|
$1,000
|
80%
|
Reject
|
|
|
N
|
582
|
3
|
$8,500
|
65%
|
Reject
|
|
|
Y
|
699
|
17
|
$12,800
|
27%
|
Approve
|
|
|
Y
|
703
|
22
|
$10,000
|
20%
|
Approve
|
|
|
N
|
585
|
18
|
$31,000
|
78%
|
Reject
|
|
|
Y
|
620
|
8
|
$16,200
|
55%
|
Reject
|
|
|
Y
|
695
|
16
|
$9,700
|
11%
|
Approve
|
|
|
Y
|
774
|
13
|
$6,100
|
7%
|
Approve
|
|
|
Y
|
802
|
10
|
$10,500
|
5%
|
Approve
|
|
|
N
|
640
|
7
|
$17,300
|
59%
|
Reject
|
|
|
N
|
536
|
14
|
$27,000
|
79%
|
Reject
|
|
|
Y
|
801
|
20
|
$13,400
|
3%
|
Approve
|
|
|
N
|
760
|
2
|
$11,200
|
70%
|
Reject
|
|
|
N
|
567
|
4
|
$2,200
|
95%
|
Reject
|
|
|
N
|
600
|
10
|
$12,050
|
81%
|
Reject
|
|
|
Y
|
702
|
11
|
$11,700
|
15%
|
Approve
|
|
|
Y
|
636
|
8
|
$29,100
|
85%
|
Reject
|
|
|
N
|
509
|
3
|
$2,000
|
100%
|
Reject
|
|
|
N
|
595
|
18
|
$29,000
|
78%
|
Reject
|
|
|
Y
|
733
|
15
|
$13,000
|
24%
|
Approve
|
|
|
Homeowner
|
Credit Score
|
Years of Credit History
|
Revolving Balance
|
Revolving Utilization
|
Decision
|
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