Question: Show that Total variation (SST) Explained variation (SSR) Unexplained variation (SSE). Trenton Bank has a scoring system that it uses to evaluate new loan applications.

Show that Total variation (SST) Explained variation (SSR) Unexplained variation (SSE).

Trenton Bank has a scoring system that it uses to evaluate new loan applications. You’ve been tracking the number of late or missed payments for a sample of “high risk” customers who received loans and have had scheduled payments over the past 60 months. The table below shows the number of late or missed payments and the credit scores for the four customers in the study.

Late or Missed Payments 15 Credit Score 220 340 300 260 10 14

Step by Step Solution

★★★★★

3.40 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Total variation S... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

486-M-S-L-R (3037).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Show that Total variation (SST) = Explained variation (SSR) + Unexplained variation (SSE). Benton University is planning to construct a new sports complex for use by its students. Beyond the cost of...

The sample data below represent the number of late and on time flights for Delta, United, and US Airways (Bureau of Transportation Statistics, March 2012). a. Formulate the hypotheses for a test that...

Every culture has a communication system that it uses to convey what?

Case 9-2 Continental A.G. Write a report of approximately 750 words that addresses the following points: Examine Continental?s financial statements for unusual accounting practices that may have a...

Complete Review Questions 1-10 at the end of "HospitalityIndustry Managerial Accounting," Ch. 5. 5Ratio AnalysisChapter 5 Outline Ratio Standards Purposes of Ratio Analysis What Ratios Express...

Homework Content Question 1 Interpreting Simple Linear Regression 1. Linear correlation coefficient r = 0.794556 2. Coefficient of Determination ( r square) 0.631319 3. Standard Error of the estimate...

1) nterpreting Simple Linear Regression 1. Linear correlation coefficient r = 0.794556 2. Coefficient of Determination ( r square) 0.631319 3. Standard Error of the estimate = 12.9668 4. SSR...

Interpreting Simple Linear Regression 1. Linear correlation coefficient r = 0.794556 2. Coefficient of Determination ( r square) 0.631319 3. Standard Error of the estimate = 12.9668 4. SSR (Explained...

QUESTION 6 Which of the following is NOT true regarding R2 (R-squared)? 0 R2 (R squared) is a unit free measure 0 R2 (R squared) is low when explained variation (SSR) is small relative to total...

diagnosis of fibrocystic breast disease? Prevention of fibrocystic breast disease? Signs and symptoms of fibrocystic breast disease? Treatment and management of fibrous tic breast disease?

On Brenda Sniezeks first day of work for the Kansas City Chiefs Football Club, she signed a document that purported to compel arbitration of any disputes that she might have with the Chiefs. In the...

This is part of Ahmads homework. a Use Ahmads method to work out the perimeter of a semicircle with: i diameter = 20 cm ii diameter = 15 m iii radius = 8 cm iv radius = 6.5 m Round your answers...

Who is the owner of a patent?

Data on the number of occurrences per time period and observed frequencies follow. Use = .05 and the goodness of fit test to see whether the data fit a Poisson distribution. Number of Occurrences...

The following data are believed to have come from a normal distribution. Use the goodness of fit test and = .05 to test this claim. 17 23 22 24 19 23 18 22 20 13 11 2 18 20 21 21 18 15 24 23 23 43...

The number of automobile accidents per day in a particular city is believed to have a Poisson distribution. A sample of 80 days during the past year gives the following data. Do these data support...

Given the following information for the competitors of Novartis AG ( NVS ) , answer the questions below. a . Assuming that Novartis AG ( NVS ) has an EPS of $ 4 . 6 5 , based upon the average P / E...

A company is considering distributing its $300 in cash either in the form of a dividend or by buying back its stock. If it distributes the $300 as a dividend, the cash will go to the current...

(Saving for retirement-future value of an annuity) Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years...