In this module, we will begin to examine individual variables and their relationship to the status of the loan. Note, this module includes review items from previous courses in the specialization. This content is not required, but recommended as content to revisit.

While there are many ways to build a classification model, we will focus on using logistic regression, a common tool for marketing problems in which the dependent variable is binary. We will begin by choosing a single predictor variable and then determine which other variables need to be added to our analysis. In this module, we will focus on developing alternative models that all have a single predictor.

In the previous module, we estimated a model linking home ownership to whether or not a loan is considered risky. In this module, we will begin by assessing the accuracy of this model relative to a naïve model. We will then use this spreadsheet as a means of assessing how well the model performs when different predictors are used.

In this module, we will generalize the logistic regression tool that was developed to include multiple predictor variables. We will also consider an alternative means of evaluating the performance of the model.

This module provides a final congratulatory video from Professor David Schweidel.