Credit Approval Decision

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Credit Approval Decisions

Homeowner Credit Score Years of Credit History Revolving Balance


Y 725 20 $ 11,320
Y 573 9 $ 7,200
Y 677 11 $ 20,000
N 625 15 $ 12,800
N 527 12 $ 5,700
Y 795 22 $ 9,000
N 733 7 $ 35,200
N 620 5 $ 22,800
Y 591 17 $ 16,500
Y 660 24 $ 9,200
Y 700 19 $ 22,000
Y 500 16 $ 12,500
Y 565 6 $ 7,700
N 620 3 $ 37,400
Y 774 13 $ 6,100
Y 802 10 $ 10,500
N 640 7 $ 17,300
N 523 14 $ 27,000
Y 811 20 $ 13,400
N 763 2 $ 11,200
N 555 4 $ 2,500
N 617 9 $ 8,400
Y 642 13 $ 16,000
N 688 3 $ 3,300
Y 649 12 $ 7,500
Y 695 15 $ 20,300
Y 701 9 $ 11,700
N 635 7 $ 29,100
N 507 2 $ 2,000
Y 677 12 $ 7,600
N 485 5 $ 1,000
N 582 3 $ 8,500
Y 699 17 $ 12,800
Y 703 22 $ 10,000
N 585 18 $ 31,000
Y 620 8 $ 16,200
Y 695 16 $ 9,700
Y 774 13 $ 6,100
Y 802 10 $ 10,500
N 640 7 $ 17,300
N 536 14 $ 27,000
Y 801 20 $ 13,400
N 760 2 $ 11,200
N 567 4 $ 2,200
N 600 10 $ 12,050
Y 702 11 $ 11,700
Y 636 8 $ 29,100
N 509 3 $ 2,000
N 595 18 $ 29,000
Y 733 15 $ 13,000
Revolving Utilization Decision SUMMARY OUTPUT
25% Approve
70% Reject Regression Statistics
55% Approve Multiple R 0.313223748290885
65% Reject R Square 0.098109116493392
75% Reject Adjusted R Square 0.059731
12% Approve Standard Error 87.2947045782089
20% Approve Observations 50
62% Reject
50% Reject ANOVA
35% Approve df
18% Approve Regression 2
83% Reject Residual 47
70% Reject Total 49
87% Reject
7% Approve Coefficients
5% Approve Intercept 604.322157772767
59% Reject Years of Credit History 4.68155698314133
79% Reject Revolving Balance -0.000334509251709
3% Approve
70% Reject
100% Reject
We can see that adjusted R square 6%, this model is capable to explain the
34% Reject statistically (Insignifiicant). P value of revolving balance is 81% which is more
25% Approve
11% Approve
5% Approve
22% Approve
15% Approve
85% Reject Credit Score
100% Reject Credit Score 1
9% Approve Years of Credit History 0.311459965553325
80% Reject Revolving Balance 0.007546213620119
65% Reject
27% Approve
20% Approve As there is no Multicollinearity issue between the variables since none of t
78% Reject
55% Reject
11% Approve
7% Approve
5% Approve
59% Reject
79% Reject
3% Approve
70% Reject
95% Reject
81% Reject
15% Approve
85% Reject
100% Reject
78% Reject
24% Approve
SS MS F Significance F
38960.903972352 19480.451986176 2.556367161214 8.83322%
358157.176027648 7620.36544739676
397118.08

Standard Error t Stat P-value Lower 95% Upper 95%


30.9075856087594 19.5525514487776 0.00% 542.144115622055 666.5002
2.0710461479574 2.26047931754616 2.85% 0.515149541491466 8.847964
0.001395994051323 -0.239620828894144 81.17% -0.003142887041681 0.002474

this model is capable to explain the variables only 5%. Though it is below benchmark. according to Annova test P value is 8.83%, and it not
volving balance is 81% which is more than benchmark value 0.10, so we need to chcek corellation beteween the variables.

Years of Credit History Revolving Balance

1
0.129899327607725 1

etween the variables since none of the value is more than 70%
Lower 95.0%
Upper 95.0%
542.1441 666.5002
0.51515 8.847964
-0.00314 0.002474

a test P value is 8.83%, and it not significant


een the variables.
Homeowner Credit ScoreYears of Credit HistoryRevolving BalanceRevolving Utilization Decision
Y 700 8 $21,000 15%
N 520 1 $4,000 90%
Y 650 10 $8,500.00 25%
N 602 7 $16,300.00 70%
N 549 2 $2,500.00 90%
Y 742 15 $16,700.00 18%

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