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

question 50

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 $135,000 on their first home purchase will default.

• A) .8529
• B) .8501
• C) .8674
• D) .8754

---

Definitions:

Shawnee Prophet

Tenskwatawa, known as the Shawnee Prophet, was a Native American leader of the Shawnee Nation and a prominent figure in leading resistance against American expansion in the early 19th century.

Traditional Indian Culture

The customs, beliefs, social practices, and material traits of India's indigenous or historical populations.

American Invasions

Military incursions by the United States into other nations, often controversial and with varied motives and outcomes.

Canada

A large country in North America known for its vast landscapes, multicultural society, and bilingual English-French heritage, operating as a parliamentary democracy and a constitutional monarchy.