Question: data : https://drive.google.com/file/d/1dUxaTr5f06I49TguetMjpss60g1lS58z/view?usp=sharing 1.What is the problem with the above design to define test and train samples? 2.Write down the Log Likelihood function for the

data : https://drive.google.com/file/d/1dUxaTr5f06I49TguetMjpss60g1lS58z/view?usp=sharing

1.What is the problem with the above design to define test and train samples?

2.Write down the Log Likelihood function for the first two observations (ID = 0 and 8)

3.Solve the model with solver using 0 as initial values.

4.For model of part 15, use 0.5 as probability threshold. What is the False positive rate in test sample (positive meaning default)?

5.Management intends to increase bank's market share in population with age < 21. Which one is more important with respect to management's goals, false positive or false negative? Explain.

6.Compare this response with response in part 3. Why are they different? Which one is more reliable?

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