Analyzing Mortgage Objective and FICO Rating Impression on Curiosity Charges
7 min learn
Simply now
Welcome to a different thrilling statistical journey! Within the earlier blogs, we now have coated some essential statistical ideas corresponding to:
- Implementing Chi-Square Test on the Credit Risk Data
- Analyzing Loan Data with Binomial and Poisson Distributions in Python
- Mastering Credit Risk Analysis: A Step-by-Step Guide to Descriptive Statistics in Python
- Introduction to Hypothesis Testing
We’ll proceed the journey and on this information, we’re going to make use of the Two-Manner ANOVA Take a look at to look at whether or not or not mortgage objective and/or the FICO rating classes impression the rate of interest debtors get.
Let’s dive-in!
The Two-Manner ANOVA (Evaluation of Variance) permits us to check the affect of two unbiased variables on one numerical dependent variable. In easier phrases:
- We’re concerned about whether or not mortgage objective (e.g., debt consolidation, bank card refinancing) and FICO rating classes (low, medium, excessive) impression the rates of interest debtors are charged.