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Exhibit 10.3
The information below is used for the following questions.
A loan officer wants to determine if people will be late in making loan payments. She has information of 18 current loans including the applicants income, level of assets and whether or not the person has been late on payments. She has performed an analysis on the data and obtained the output shown below.
-Refer to Exhibit 10.3. Compute the discriminant score and predicted group for someone with an income of 65 and assets of 11.
Approving Nod
A gesture made by moving the head up and down to signify agreement or approval.
Cool Drink
A beverage served chilled, often refreshing and consumed to quench thirst or provide relief from heat.
Pain Relief
Methods or treatments used to reduce the intensity of pain experienced by an individual.
Positive Stimulus
An event or object that encourages a favorable response from an individual or system.
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