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 1 if the customer has owned a home before and 0 if this is their first home. Estimate the probability that a buyer who spent $535,600 on their fourth home purchase will default.
A) .5842
B) .5674
C) .9834
D) .9465

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 1 if the customer has owned a home before and 0 if this is their first home. Estimate the probability that a buyer who spent $535,600 on their fourth home purchase will default.   
A) .5842 
B) .5674 
C) .9834 
D) .9465

Quizplus · Accepted Answer

p(53560,0) == 0.5842

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