Question: WHAT IS THE POTENTIAL SOLUTION OF THIS PROBLEM? Description: Assignment Details For loan applications, you will use logistic regression to determine the probability of default.

WHAT IS THE POTENTIAL SOLUTION OF THIS PROBLEM?

Description: Assignment Details

For loan applications, you will use logistic regression to determine the probability of default.

Click here to access German credit data. These credit data contain attributes and outcomes on 1,000 loan applications. These data sets are provided for the machine learning community.

Lending that results in a default is very costly, and for this data set, you will use logistic regression to determine the probability of default. Address the following:

  • Use the duration, amount, installment, and age in this analysis along with loan history, purpose, and rent.
  • Use random selection for 900 cases to train the program. The other 100 cases will be used for testing.
  • Test the program, and describe your results.

You will show the code and provide a description for this project in 4-6 pages.

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