Below Gives the Data Concerning (1) the Dependent Variable Default

question 88

Multiple Choice

Below gives the data concerning (1) the dependent variable Default which equals 1 if a customer defaults on their loan and 0 if they do not; (2) the independent variable Price of Home, which is the price of the home (in tens) and (3) the independent variable First Purchase which equals 1 if the customer has owned a home before and 0 if this is their first home. Estimate the probability that a buyer who spent $535,600 on their fourth home purchase will default.

• A) .5842
• B) .5674
• C) .9834
• D) .9465

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Definitions:

Individual Needs

The personal requirements or desires that drive behavior and motivate actions in people, aiming to achieve a sense of fulfillment or satisfaction.

Five Levels

A hierarchical framework, often used in organizational or psychological contexts, describing stages of development or priority.

Herzberg's Two-Factor Theory

A theory that divides workplace factors into two categories: hygiene factors, which prevent dissatisfaction, and motivators, which encourage employees to work harder.

Job Dissatisfaction

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