Profitable banks are ones that make good decisions on loan applications. Credit scoring is the statistical technique that helps banks make that decision. However, many branches overturn credit scoring recommendations, whereas other banks do not use the technique. In an attempt to determine the factors that affect loan decisions, a statistics practitioner surveyed 100 banks and recorded the percentage of bad loans (any loan that is not completely repaid), the average size of the loan, and whether a scorecard is used, and if so, whether scorecard recommendations are overturned more than 10% of the time. These results are stored in columns 1 (percentage good loans), 2 (average loan), and 3 (code 1 = no scorecard, 2 = scorecard overturned more than 10% of the time, and 3 = scorecard overturned less than 10% of the time). a. Create indicator variables to represent the codes. b. Perform a regression analysis. c. How well does the model fit the data? d. Is multicollinearity a problem? e. Interpret and test the coefficients. What does this tell you? f. Predict with 95% confidence the percentage of bad loans for a bank whose average loan is $10,000 and that does not use a scorecard.
The probability is p that Marty hits target M when he fires at it. The probability is q that Alvie hits target A when he fires at it. Marty and Alvie fire one shot each...Aug 03 2020
On January 1, a company issues bonds dated January 1 with a parvalue of $360,000. The bonds mature in 5 years. The contract rateis 9%, and interest is paid semiannually o...Mar 20 2020
1 (a) Compare and contrast the theories of Belbin (Team-Roles) and Tuckman’s (stages of group development). (b) Give an example of how a manager could apply each of these...Apr 30 2020
Compute the firm's predetermined overhead rate.2. Compute the amount of overhead to be charged to the Gargus and Feller accounts using the predetermined overhead rat...Mar 27 2020
The Onboard Co. is a new firm in a rapidly growing industry. Thecompany is planning on increasing its annual dividend by 21.2percent a year for the next 3 years and then ...Dec 02 2019
A firm has sales of $1,060, net income of $176, net fixed assets of $456, and current assets of $254. The firm has $93 in inventory. What is the common-size statement val...Sep 02 2020
Managers need to consider the type of control system that they wish to use. Which control system helps managers to regulate and supply inputs to obtain maximum production...Dec 25 2017
If the price of X was cut in half The budget line would rotate in such a way that it would become steeper, but the Y intercept would not change. The budget line would bec...Feb 01 2020
What characteristic distinguishes South American monkeys from African monkeys? (A) Long, prehensile tails (B) Binocular vision (C) Grasping fingers and toes (D) O...Mar 19 2018
An American football team consists of 20 offensive players and 20 defensive players. The players are to be paired in groups of 2 for the purpose of determining roommates....Apr 23 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.