Below gives the data concerning (1) the dependent variable Default which equals 1 if a customer defaults on their loan and 0 if they do not; (2) the independent variable Price of Home, which is the price of the home (in tens) and (3) the independent variable First Purchase which equals 0 if the customer has owned a home before and 1 if this is their first home. Identify and interpret the odds ratio estimate for Price of Home.

Parameter Estimates Term Estimate Chi Square Prob>ChiSq Intercept - 3.45926 5.09 0.0218 Price of Home 0.70935 5.69 0.0201 First Purchase 4.25943 6.34 0.0136

Term Odds Ratio Lower 95% Upper 95% Reciprocal Price of Home 4.56798 3.98766 4.786593 0.218919 First Purchase 10.8675 9.65468 11.89645 0.092018

Multiple Choice A) Odds ratio: 4.56789; for each addition $100 spent on a home, the odds of a person defaulting increased 4.56%

B) Odds ratio: 4.56789; for each addition $10 spent on a home, a default is 4 times more likely

C) Odds ratio: 4.56789; for each addition $1000 spent on a home, a default is 4 times less likely for each additional $1,000 spent

D)Odds ratio: 4.56789; for each addition $10 spent on a home, the odds of a person defaulting increased 4.56%