# SAS Enterprise Miner homework Harvard Case Solution & Analysis

## SAS Enterprise Miner homework Case Solution

The second model is drawn between NO and Revolving Utilization of Unsecured L, age and Debt ratio. Again by looking at the R^2 of 0.00 between the dependent and independent variable; it is clear that there is no relationship between answer NO and Revolving Utilization of Unsecured L, age and Debt ratio. Our Ho is that answer NO and Revolving Utilization of Unsecured L, age and Debt ratio doesn’t have any relationship. The F-test value is 0.09 which is close to 1, this means that our null hypothesis is true.

RESULTS:

The predictive model of target variable of SeriousDlqin2yrs and Revolving Utilization of Unsecured L, age and Debt ratio shows that there is no relationship between the dependent variable and independent variables.

CONCLUSIONS AND RECOMMENDATIONS:

The predictive model was made by taking into account a target variable of SeriousDlqin2yrs and few independent variables; Revolving Utilization of Unsecured L, age and Debt ratio. It was to be seen that if there is any relationship between the independent and dependent variable. After the predictive model; it’s clear that there is no relationship between “experiences of delinquency within 90 days” with variables Revolving Utilization of Unsecured L, age and Debt ratio. The age doesn’t affect the person’s ability to repay the loans and so does the debt ratio. To predict the delinquency of a person, we need to have other variables as these variables don’t show any relationship between each other.

EXHIBITS

EXIHIBIT 1

 Analysis Variable : SeriousDlqin2yrs N Skewness 150000 3.4688571

EXHBIT 2

 Root MSE 43299 R-Square 0.0000 Dependent Mean 75783 Adj R-Sq -0.0003 Coeff Var 57.1355

 Analysis of Variance Source DF Sum of Squares Mean Square F Value Pr > F Model 3 293369444 97789815 0.05 0.9843 Error 8353 1.566033E13 1874815339 Corrected Total 8356 1.566063E13

EXHIBIT 3

 Analysis of Variance Source DF Sum of Squares Mean Square F Value Pr > F Model 3 35748077 11916026 0.09 0.9667 Error 29996 4.069259E12 135660040 Corrected Total 29999 4.069294E12

 Parameter Estimates Variable DF Parameter Estimate Standard Error t Value Pr > |t| Intercept 1 20037 249.00719 80.47 <.0001 Revolving Utilization Of UnsecuredL 1 0.13102 0.27644 0.47 0.6355 Age 1 0.89112 4.63908 0.19 0.8477 Debt Ratio 1 0.00890 0.18130 0.05 0.9608

EXHIBITS

EXIHIBIT 1

EXHBIT 2

EXHIBIT 3