Answer question a and b

126 Problems 1. Nast Stores has derived the following consumer credit scoring model after years of data collect- ing and model testing: Y= (0.20 EMPLOYMT)+(0.4 * HOMEOWNER) + (0.3 CARDS) where EMPLOYMT = 1 if employed full-time, 0.5 if employed part-time, and 0 if unemployed HOMEOWNER = 1 if homeowner, otherwise CARDS = 1 if presently has 1-5 credit cards, 0 otherwise Nast determines that a score of at least 0.70 indicates a very good credit risk, and it extends credit to these individuals. a. If Janice is employed part-time, is a homeowner, and has six credit cards at present, does the model indicate she should receive credit? b. Janice just got a full-time job and closed two of her credit card accounts. Should she re- ceive credit? Has her creditworthiness increased or decreased, according to the model? c. Your boss mentions that he just returned from a trade association one of the speakers recom