In classification, which of the following would be considered as a categorical variable of interest for a credit approval decision for a requester?
A) age of the requester
B) income of the requester
C) revolving balance of the requester
D) reject or accept credit approval

Question

Quizplus · Accepted Answer

In the context of a credit approval decision, the categorical variable of interest is the outcome variable, which is whether the credit is rejected or accepted. This is a categorical variable because it divides the data into distinct categories (reject or accept) without any inherent order. Age, income, and revolving balance are all examples of numerical variables, not categorical.

In Classification, Which of the Following Would Be Considered as a Categorical