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:

Mutual Perspective Taking

The ability to understand the thoughts and feelings of others from their viewpoint as well as one's own.

Reasoning

The cognitive function of forming deductions, evaluations, or conclusions based on given facts or propositions.

Fixed Ideas

Persistent thoughts or beliefs that are often rigid and resistant to change, even in the face of contradictory evidence.

Changing Behaviors

The process of modifying actions or reactions through various techniques and interventions.