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uz Homework 7 (CCP7 ×VE. Alternate Cut off Confus x:C Registration Conlimatio. f

ID: 2619165 • Letter: U

Question

uz Homework 7 (CCP7 ×VE. Alternate Cut off Confus x:C Registration Conlimatio. fsuinstructure.com/courses/19608/quizzes/107045/take/questions/2245603 S630.D44> Quizzes> Homework 7 (CCP7) Homework 7 (CCP7) Started: Jun 25 at 5:54pm Quiz Instructions You have two attempts. Average score of used attempts will be kept as your quiz score. This quiz will expire on due date.Late submission is not possible for this quiz. Correct answers will be shown after the due date. D Question 5 4 pts Refer to exhibit 1 and interpret the estimated coefficient for the total loans and leases to total assets ratio (TotLns&Lses;/Assets) in terms of the odds of being financially weak. A positive coefficient in the logit model translates into an odds larger than 1 (TRUE/FALSE?) True False

Explanation / Answer

False

Logistic regression coefficeint of less than 0.5 gives odds less than 1

Above 0.5 gives odds greater than 1

Equal to 0.5 gives odds 1

e.g: coefficeint = 0.4 => odds = 0.4/(1-0.4) = 0.4/0.6 = 0.67

coefficeint = 0.8 => odds = 0.8/(1-0.8) = 0.8/0.2 = 5