Unit 4 – Discussion Board 3

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Using the German credit data that you downloaded for your project in Phase 3, you will address the issues of lending that result in default. You will post an analysis and discuss your findings.

The two outcomes are success (defaulting on the loan) and failure (not defaulting). The explanatory variables in the logistic regression are both the type of loan and the borrowing amount.

For the k-means classification, use 3 continuous variables: duration, amount, and installment.
Then you will use cross-validation with k = 5 for the nearest neighbor.

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