Question
Use logistic regression to classify the new data in the Excel file Credit Approval Decisions Coded using only credit score and years of credit history as input variables.
Coded Credit Approval Decisions Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision 1 725 20 $ 11,320 25% 1 1 573 9 $ 7,200 70% 0 1 677 11 $ 20,000 55% 1 0 625 15 $ 12,800 65% 0 0 527 12 $ 5,700 75% 0 1 795 22 $ 9,000 12% 1 0 733 7 $ 35,200 20% 1 0 620 5 $ 22,800 62% 0 1 591 17 $ 16,500 50% 0 1 660 24 $ 9,200 35% 1 1 700 19 $ 22,000 18% 1 1 500 16 $ 12,500 83% 0 1 565 6 $ 7,700 70% 0 0 620 3 $ 37,400 87% 0 1 774 13 $ 6,100 7% 1 1 802 10 $ 10,500 5% 1 0 640 7 $ 17,300 59% 0 0 523 14 $ 27,000 79% 0 1 811 20 $ 13,400 3% 1 0 763 2 $ 11,200 70% 0 0 555 4 $ 2,500 100% 0 0 617 9 $ 8,400 34% 0 1 642 13 $ 16,000 25% 1 0 688 3 $ 3,300 11% 1 1 649 12 $ 7,500 5% 1 1 695 15 $ 20,300 22% 1 1 701 9 $ 11,700 15% 1 0 635 7 $ 29,100 85% 0 0 507 2 $ 2,000 100% 0 1 677 12 $ 7,600 9% 1 0 485 5 $ 1,000 80% 0 0 582 3 $ 8,500 65% 0 1 699 17 $ 12,800 27% 1 1 703 22 $ 10,000 20% 1 0 585 18 $ 31,000 78% 0 1 620 8 $ 16,200 55% 0 1 695 16 $ 9,700 11% 1 1 774 13 $ 6,100 7% 1 1 802 10 $ 10,500 5% 1 0 640 7 $ 17,300 59% 0 0 536 14 $ 27,000 79% 0 1 801 20 $ 13,400 3% 1 0 760 2 $ 11,200 70% 0 0 567 4 $ 2,200 95% 0 0 600 10 $ 12,050 81% 0 1 702 11 $ 11,700 15% 1 1 636 8 $ 29,100 85% 0 0 509 3 $ 2,000 100% 0 0 595 18 $ 29,000 78% 0 1 733 15 $ 13,000 24% 1
Explanation / Answer
Using SPSS
Hence logistic regression is
y= -36.897 +0.421 (x1) +0.049(x2)
Classification Tablea,b Observed Predicted decission Percentage Correct no yes Step 0 decission no 27 0 100.0 yes 23 0 0.0 Overall Percentage 54.0 a. Constant is included in the model. b. The cut value is .500
