Logical Report

Question 1

Banks are often faced with the decision to either grant or deny an application for a credit card loan. ED Bank approaches a social psychologist to help them find a mathematical equation they can use to make their decision. The bank provides the psychologist with data from people who have received credit loans from ED Bank in the past. The data contains a total of 9 variables, including a variable that indicates whether a person had been unable to pay back their loan in the past, i.e. whether a person has defaulted in the past (variable ‘default’). The file bankloan.sav contains the data from this study.

Using the first 50% of cases from your data set, undertake logistic regression to find the best fitting equation to predict defaulting or not from the other variables. Use the forward Likelihood Ratio method and a cut-off of 0.5.

Cross validate your equation using the remaining 50% of cases.

Report all your conclusions and the statistics on which they are based. You should provide a clear and logical report and conclude with a final section drawing your findings together with an interpretation of the data.

(25 marks)

 

Question 2
An animal shelter has provided data about intake of dogs. An excerpt from the data are in an excel file namedshelter_dogs. The table gives the number of dogs that were taken in, classified by the breed of dog (‘breed’), the sex of the dog (‘sex’) and the colour of the coat (‘colour’).

Collapse the data across the variable ‘sex’, separately for the different breeds and coat colours. This way you will generate a data set with only two independent variables (‘breed’ and ‘colour’). Then, enter the data into SPSS using suitable labels.

Undertake a correspondence analysis on the data and determine any patterns that may be present in the relationship between the breed and the colour of the coat. Use tables and/or figures as you see fit.

Report all your conclusions and the statistics on which they are based. You should provide a clear and logical report to justify your thoughts. You should conclude with a final section drawing your findings together with an interpretation of the data.

(25 marks)