Exhibit 17

question 103

Essay

Exhibit 17.9.A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank.The rating is based on the probability of defaulting on credit cards and is as follows. To estimate this probability,she decided to use the logistic model: ,
where,
y = a binary response variable with value 1 corresponding to a default,and 0 to a no default,
x₁ = the ratio of the credit card balance to the credit card limit (in percent),
x₂ = the ratio of the total debt to the annual income (in percent).
Using Minitab on the sample data,she arrived at the following estimates: Note: The p-values of the corresponding tests are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.9.What are the conclusions of testing the individual significance of the balance ratio and the debt ratio at the 1% level?

Analyze the causes and effects of major legislative actions and events, such as the Nuremberg Laws and Kristallnacht.

Discuss the influence of economic theories and practices on the recovery and rearmament of European countries.

Examine the role of art and culture in reflecting and resisting the ideologies and atrocities of the era.

Understand the definition, purpose, and examples of scientific misconduct within psychological research.

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Definitions:

Acceptance

An agreement to the terms of an offer, thereby creating a binding contract.

Option

In finance, a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified timeframe.

Revoking

The action of withdrawing, canceling, or annulling something previously granted, such as a privilege, right, or contract.

Offer

A proposal by one party to enter into a contract upon specified terms, subject to acceptance.