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 $435,000 on their first home purchase will default.
A) .99636
B) .9899
C) .9768
D) .9695

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 $435,000 on their first home purchase will default.   
A) .99636 
B) .9899 
C) .9768 
D) .9695

Quizplus · Accepted Answer

p(43500,1) == 0.99636

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