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. Estimate the probability that a buyer who spent $678,700 on their first home will default.
A) .9832
B) .99636
C) .9998
D) .9345

Question

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. Estimate the probability that a buyer who spent $678,700 on their first home will default.   
A) .9832 
B) .99636 
C) .9998 
D) .9345

Quizplus · Accepted Answer

p(67870,1) == 0.99636

Below Gives the Data Concerning (1) the Dependent Variable Default