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

question 49

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 $435,000 on their first home purchase will default.

• A) .99636
• B) .9899
• C) .9768
• D) .9695

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Definitions:

Performance Rating

An assessment or evaluation of an individual’s or group's work performance, usually based on established criteria and objectives.

Normal Time

The amount of time that a task should take under normal conditions, often used in the context of planning and scheduling.

Standard Time

The predetermined duration expected to finish a certain task or job under usual working circumstances.

Variable Allowance

Refers to the additional time factored into tasks or jobs to account for various unpredictable factors that could affect the time required to complete a task.