The document analyzes loan data from Lending Club to determine the relationship between interest rate and FICO score. It finds a significant negative association, with interest rate decreasing by 1% for every increase of 0.08 in FICO score. Other variables like loan length, amount borrowed, and amount funded also influence interest rate and FICO score. Including these in the analysis improves the model but does not remove the negative relationship between interest rate and FICO score.
Predicting Credit Card Defaults using Machine Learning AlgorithmsSagar Tupkar
This is a project that I worked on as a Capstone for my Masters in Business Analytics program at the University of Cincinnati. In this project, I have performed an end-to-end data mining exercise including data cleaning, distribution analysis, exploratory data analysis, model building etc. to identify and predict Credit Card defaults using Customer's data on past payments and general profile. In the process for building Machine Learning models, I have fit and compared the performance of multiple models and algorithms like Logistic Regreesion, PCA, Classification tree, AdaBoost Classifier, ANN and LDA.
Peer-to-peer lending companies provide online platforms that can quickly pair borrowers seeking a loan with investors willing to fund the loan at an attractive rate. Since these loans are unsecured and companies creating the market generally do not invest their own capital, neither borrowers nor companies assume any risk. Entire credit risk is born by investors. Literature shows that credit risk depends upon borrower characteristics, loan terms and regional macroeconomic factors. To help investors identify unsecured loans likely to be fully paid, a machine learning algorithm was developed to forecast probability of full payment and probability of default.
Training and input data consisted of historic loans’ data from Lending Club and state level macroeconomic data from government and organizational sources. A logistic regression was
shown to provide optimal results, effectively sequestering high risk loans.
Team Members:
Archange Giscard Destine
ad1373@georgetown.edu
linkedin.com/in/agdestine
Steven L. Lerner
sll93@georgetown.edu
linkedin.com/in/sllerner
Erblin Mehmetaj
em1109@georgetown.edu
www.linkedin.com/in/erblinmehmetaj
Hetal Shah
hrs41@georgetown.edu
linkedin.com/in/hetalshah
The Influence of Solvency Ratio Decision on Rural Bank Dinar Pusaka In The Di...inventionjournals
The solvency ratio is a ratio that can be used to influence lending decisions on the BPR. This research purpose to test and find empirical evidence whether the Debt to Assets Ratio, Times Interest Earned Ratio, and Long-term Debt to Equity Ratio influence on lending decisions. The population useful for customers apply for credit to the BPR Dinar Pusaka in the district Sidoarjo. The sample in this research were selected using purposive sampling method until elected only 30 customers during the three periods, namely the year 2013 to 2015. Data analysis technique used is the logistic regression analysis. The research results show that Times Interest Earned Ratio variable does not affect the lending decisions. Meanwhile, the variable Debt to Assets Ratio and Long-term Debt to Equity Ratio influence on lending decisions
• Forecasted the Expected Credit Loss, over the lifetime of the mortgage. Built Loan-level PD Model using Markov Chain Transition Matrix and logistic regression with six transition states and validated them using backtesting.
Bank Interconnectedness What determines the links? - Puriya Abbassi, Christia...SYRTO Project
Bank Interconnectedness What determines the links? - Puriya Abbassi, Christian Brownlees, Christina Hans, Natalia Podlich.
SYRTO Code Workshop
Workshop on Systemic Risk Policy Issues for SYRTO (Bundesbank-ECB-ESRB)
Head Office of Deustche Bundesbank, Guest House
Frankfurt am Main - July, 2 2014
IEEE PROJECTS 2015
1 crore projects is a leading Guide for ieee Projects and real time projects Works Provider.
It has been provided Lot of Guidance for Thousands of Students & made them more beneficial in all Technology Training.
Dot Net
DOTNET Project Domain list 2015
1. IEEE based on datamining and knowledge engineering
2. IEEE based on mobile computing
3. IEEE based on networking
4. IEEE based on Image processing
5. IEEE based on Multimedia
6. IEEE based on Network security
7. IEEE based on parallel and distributed systems
Java Project Domain list 2015
1. IEEE based on datamining and knowledge engineering
2. IEEE based on mobile computing
3. IEEE based on networking
4. IEEE based on Image processing
5. IEEE based on Multimedia
6. IEEE based on Network security
7. IEEE based on parallel and distributed systems
ECE IEEE Projects 2015
1. Matlab project
2. Ns2 project
3. Embedded project
4. Robotics project
Eligibility
Final Year students of
1. BSc (C.S)
2. BCA/B.E(C.S)
3. B.Tech IT
4. BE (C.S)
5. MSc (C.S)
6. MSc (IT)
7. MCA
8. MS (IT)
9. ME(ALL)
10. BE(ECE)(EEE)(E&I)
TECHNOLOGY USED AND FOR TRAINING IN
1. DOT NET
2. C sharp
3. ASP
4. VB
5. SQL SERVER
6. JAVA
7. J2EE
8. STRINGS
9. ORACLE
10. VB dotNET
11. EMBEDDED
12. MAT LAB
13. LAB VIEW
14. Multi Sim
CONTACT US
1 CRORE PROJECTS
Door No: 214/215,2nd Floor,
No. 172, Raahat Plaza, (Shopping Mall) ,Arcot Road, Vadapalani, Chennai,
Tamin Nadu, INDIA - 600 026
Email id: 1croreprojects@gmail.com
website:1croreprojects.com
Phone : +91 97518 00789 / +91 72999 51536
Predicting Credit Card Defaults using Machine Learning AlgorithmsSagar Tupkar
This is a project that I worked on as a Capstone for my Masters in Business Analytics program at the University of Cincinnati. In this project, I have performed an end-to-end data mining exercise including data cleaning, distribution analysis, exploratory data analysis, model building etc. to identify and predict Credit Card defaults using Customer's data on past payments and general profile. In the process for building Machine Learning models, I have fit and compared the performance of multiple models and algorithms like Logistic Regreesion, PCA, Classification tree, AdaBoost Classifier, ANN and LDA.
Peer-to-peer lending companies provide online platforms that can quickly pair borrowers seeking a loan with investors willing to fund the loan at an attractive rate. Since these loans are unsecured and companies creating the market generally do not invest their own capital, neither borrowers nor companies assume any risk. Entire credit risk is born by investors. Literature shows that credit risk depends upon borrower characteristics, loan terms and regional macroeconomic factors. To help investors identify unsecured loans likely to be fully paid, a machine learning algorithm was developed to forecast probability of full payment and probability of default.
Training and input data consisted of historic loans’ data from Lending Club and state level macroeconomic data from government and organizational sources. A logistic regression was
shown to provide optimal results, effectively sequestering high risk loans.
Team Members:
Archange Giscard Destine
ad1373@georgetown.edu
linkedin.com/in/agdestine
Steven L. Lerner
sll93@georgetown.edu
linkedin.com/in/sllerner
Erblin Mehmetaj
em1109@georgetown.edu
www.linkedin.com/in/erblinmehmetaj
Hetal Shah
hrs41@georgetown.edu
linkedin.com/in/hetalshah
The Influence of Solvency Ratio Decision on Rural Bank Dinar Pusaka In The Di...inventionjournals
The solvency ratio is a ratio that can be used to influence lending decisions on the BPR. This research purpose to test and find empirical evidence whether the Debt to Assets Ratio, Times Interest Earned Ratio, and Long-term Debt to Equity Ratio influence on lending decisions. The population useful for customers apply for credit to the BPR Dinar Pusaka in the district Sidoarjo. The sample in this research were selected using purposive sampling method until elected only 30 customers during the three periods, namely the year 2013 to 2015. Data analysis technique used is the logistic regression analysis. The research results show that Times Interest Earned Ratio variable does not affect the lending decisions. Meanwhile, the variable Debt to Assets Ratio and Long-term Debt to Equity Ratio influence on lending decisions
• Forecasted the Expected Credit Loss, over the lifetime of the mortgage. Built Loan-level PD Model using Markov Chain Transition Matrix and logistic regression with six transition states and validated them using backtesting.
Bank Interconnectedness What determines the links? - Puriya Abbassi, Christia...SYRTO Project
Bank Interconnectedness What determines the links? - Puriya Abbassi, Christian Brownlees, Christina Hans, Natalia Podlich.
SYRTO Code Workshop
Workshop on Systemic Risk Policy Issues for SYRTO (Bundesbank-ECB-ESRB)
Head Office of Deustche Bundesbank, Guest House
Frankfurt am Main - July, 2 2014
IEEE PROJECTS 2015
1 crore projects is a leading Guide for ieee Projects and real time projects Works Provider.
It has been provided Lot of Guidance for Thousands of Students & made them more beneficial in all Technology Training.
Dot Net
DOTNET Project Domain list 2015
1. IEEE based on datamining and knowledge engineering
2. IEEE based on mobile computing
3. IEEE based on networking
4. IEEE based on Image processing
5. IEEE based on Multimedia
6. IEEE based on Network security
7. IEEE based on parallel and distributed systems
Java Project Domain list 2015
1. IEEE based on datamining and knowledge engineering
2. IEEE based on mobile computing
3. IEEE based on networking
4. IEEE based on Image processing
5. IEEE based on Multimedia
6. IEEE based on Network security
7. IEEE based on parallel and distributed systems
ECE IEEE Projects 2015
1. Matlab project
2. Ns2 project
3. Embedded project
4. Robotics project
Eligibility
Final Year students of
1. BSc (C.S)
2. BCA/B.E(C.S)
3. B.Tech IT
4. BE (C.S)
5. MSc (C.S)
6. MSc (IT)
7. MCA
8. MS (IT)
9. ME(ALL)
10. BE(ECE)(EEE)(E&I)
TECHNOLOGY USED AND FOR TRAINING IN
1. DOT NET
2. C sharp
3. ASP
4. VB
5. SQL SERVER
6. JAVA
7. J2EE
8. STRINGS
9. ORACLE
10. VB dotNET
11. EMBEDDED
12. MAT LAB
13. LAB VIEW
14. Multi Sim
CONTACT US
1 CRORE PROJECTS
Door No: 214/215,2nd Floor,
No. 172, Raahat Plaza, (Shopping Mall) ,Arcot Road, Vadapalani, Chennai,
Tamin Nadu, INDIA - 600 026
Email id: 1croreprojects@gmail.com
website:1croreprojects.com
Phone : +91 97518 00789 / +91 72999 51536
Standards of Auditing - Introduction and Application in the Indian ContextBharath Rao
A brief introduction to those who are new to the standards of auditing as issued by the Institute of Chartered Accountants of India. This presentation briefs about the concept of Auditing Standards, its relevance and its application in our daily audits.
This Student Financial Service system provides an easy, accessible, and seamless to
students whenever they need it. It ensures access to a PU education for all admitted and enrolled
students without regard to their financial circumstances. It provides the best possible solutions and
service to students and their families.
This paper examines the role of loan characteristics in mortgage default probability for different mortgage lenders in the UK. The accuracy of default prediction is tested with two statistical methods, a probit model and linear discriminant analysis, using a unique dataset of defaulted commercial loan portfolios provided by sixty-six financial institutions. Both models establish that the attributes of the underlying real estate asset and the lender are significant factors in determining default probability for commercial mortgages. In addition to traditional risk factors such as loan-to-value and debt servicing coverage ratio lenders and regulators should consider loan characteristics to assess more accurately probabilities of default.
The information you provided appears to be a list of column headers or variables related to a dataset containing information about loans or credit-related data. Here's a brief description of each column:
1. credit.policy: A binary variable indicating whether a customer meets the credit policy criteria (1 for yes, 0 for no).
2. purpose: The purpose for which the loan was taken (e.g., debt consolidation, credit card, small business).
3. int.rate: The interest rate of the loan.
4. installment: The monthly installment payment amount.
Estimation of Net Interest Margin Determinants of the Deposit Banks in Turkey...inventionjournals
Banks, which are the irreplaceable intermediaries of the financial system, are financial institutions that significantly contributeto economic development. The basiccriterion that indicates the efficiency of the intermediation activities of banks is the net interest margins. These costs are assumed to be high for developing countries such as Turkey. The degree to which banks are willing to redeem the funds they collect as credit to the system is directly related to how low their intermediation costs will be. In this paper, it is aimed to estimate the net interest margin determinants of deposit banks in Turkey. Three different panel data models are used for this purpose. These are the Fixed and Random Static models and the GMM (Generalized Moment Models) Dynamic model
Thanks for your work on this assignment. The biggest challenge i.docxtodd191
Thanks for your work on this assignment. The biggest challenge in your paper is that you used many words to try and make a particular point, but in doing so, your message got lost. I would like to see you be much more explicit in your writing to help the reader understand your main ideas. Please see comments and example for guidance.
Dr. Guevara
( 1.52 / 2.00) Writes a Reflective Mentoring Philosophy Which is At Least 300 Words
Basic - Writes a limited reflective mentoring philosophy that is between 200 and 250 words. The philosophy is underdeveloped.
Comments:
While your philosophy meets the 300-word requirement, you still needed to address a wider variety of the recommended aspects of mentoring.
( 2.28 / 3.00) Responds to the Required Questions Regarding the Documentation Form Using the Text as Support
Basic - Partially responds to the required questions regarding the documentation form, minimally using the text as support. Relevant details are missing.
Comments:
You suggest some interesting ideas, but more details were needed. Additionally, you did not use the text to support your thinking.
( 0.84 / 1.10) Applied Ethics: Ethical Self-Awareness
Basic - Defines both core beliefs and the origins of the core beliefs.
Comments:
The paper tends to be generic and overgeneralizes situations without recognizing ethical complexities.
( 0.84 / 1.10) Creative Thinking: Connecting, Synthesizing, and Transforming
Basic - Associates ideas or solutions in novel ways.
Comments:
You did not synthesize information in an organized way, which prevents the reader from gaining a clear sense of analysis.
( 0.18 / 0.20) Written Communication: Control of Syntax and Mechanics
Proficient - Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors and is mostly easy to understand.
Comments:
Good job! Correct conventions facilitate the reading of the text.
( 0.18 / 0.20) Written Communication: APA Formatting
Proficient - Exhibits APA formatting throughout the paper. However, layout contains a few minor errors.
( 0.20 / 0.20) Written Communication: Page Requirement
Distinguished - The length of the paper is equivalent to the required number of correctly formatted pages.
( 0.20 / 0.20) Written Communication: Resource Requirement
Distinguished - Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.
Overall Score: 6.24 / 8.00
Overall Grade: 6.24
J R E R u V o l . 3 9 u N o . 2 – 2 0 1 7
W h a t C a n W e L e a r n f r o m P a s t M i s t a k e s ?
L e s s o n s f r o m D a t a M i n i n g t h e F a n n i e
M a e M o r t g a g e P o r t f o l i o
A u t h o r s S t a n i s l a v M a m o n o v a n d R a q u e l
B e n b u n a n - F i c h
A b s t r a c t Fannie Mae has been widely criticized for its role in the recent
financial crisis, y.
Thanks for your work on this assignment. The biggest challenge i.docxarnoldmeredith47041
Thanks for your work on this assignment. The biggest challenge in your paper is that you used many words to try and make a particular point, but in doing so, your message got lost. I would like to see you be much more explicit in your writing to help the reader understand your main ideas. Please see comments and example for guidance.
Dr. Guevara
( 1.52 / 2.00) Writes a Reflective Mentoring Philosophy Which is At Least 300 Words
Basic - Writes a limited reflective mentoring philosophy that is between 200 and 250 words. The philosophy is underdeveloped.
Comments:
While your philosophy meets the 300-word requirement, you still needed to address a wider variety of the recommended aspects of mentoring.
( 2.28 / 3.00) Responds to the Required Questions Regarding the Documentation Form Using the Text as Support
Basic - Partially responds to the required questions regarding the documentation form, minimally using the text as support. Relevant details are missing.
Comments:
You suggest some interesting ideas, but more details were needed. Additionally, you did not use the text to support your thinking.
( 0.84 / 1.10) Applied Ethics: Ethical Self-Awareness
Basic - Defines both core beliefs and the origins of the core beliefs.
Comments:
The paper tends to be generic and overgeneralizes situations without recognizing ethical complexities.
( 0.84 / 1.10) Creative Thinking: Connecting, Synthesizing, and Transforming
Basic - Associates ideas or solutions in novel ways.
Comments:
You did not synthesize information in an organized way, which prevents the reader from gaining a clear sense of analysis.
( 0.18 / 0.20) Written Communication: Control of Syntax and Mechanics
Proficient - Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors and is mostly easy to understand.
Comments:
Good job! Correct conventions facilitate the reading of the text.
( 0.18 / 0.20) Written Communication: APA Formatting
Proficient - Exhibits APA formatting throughout the paper. However, layout contains a few minor errors.
( 0.20 / 0.20) Written Communication: Page Requirement
Distinguished - The length of the paper is equivalent to the required number of correctly formatted pages.
( 0.20 / 0.20) Written Communication: Resource Requirement
Distinguished - Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.
Overall Score: 6.24 / 8.00
Overall Grade: 6.24
J R E R u V o l . 3 9 u N o . 2 – 2 0 1 7
W h a t C a n W e L e a r n f r o m P a s t M i s t a k e s ?
L e s s o n s f r o m D a t a M i n i n g t h e F a n n i e
M a e M o r t g a g e P o r t f o l i o
A u t h o r s S t a n i s l a v M a m o n o v a n d R a q u e l
B e n b u n a n - F i c h
A b s t r a c t Fannie Mae has been widely criticized for its role in the recent
financial crisis, y.
The aim of this study is to determining the factors which could affect the credit scoring to reveal the relationship between economical policies implemented in Turkey and the credit ratings given by credit scoring agencies with econometrics method along with comparisons among countries. When the countries own resources are not enaugh to finance economical growth, countries are needed for foreign investments.These foreign investments are wanted by countries as direct foreign investments or financial investments. Both kinds want to have a trust on types of economies to invest on them. For this reason it is needed to have a indicator for safety of a country to invest .The most important indicator developed for this purpose is credit rate. Thus, figures of GDP, Current Account Balance, Foreign Borrowing and Inflation of Turkey in the year of the 2000-2015 using parametric and semiparametric logit models. The semiparametric methods best fitting models using best fitting smoothing methods when the combines that best features of the parametric and nonparametric approaches when the parametric model violated. We used the data of IMF World Economic Outlook Database and IMF Article IV countries reports, Moody’s,Standart&Poors and Fitch main reports on site.
Mortgage Default, Property Price and Banks’ Lending Behaviour in Hong Kong SAR.Fawaz Khaled
MORTGAGE DEFAULT, PROPERTY PRICE AND BANKS’ LENDING BEHAVIOUR IN HONG KONG SAR is a research presented in the 9th International Conference on Computational and Financial Econometrics. December 13th 2015.
Effect of Credit Risk Management Practices on Profitability of Listed Commerc...iosrjce
The study sought to analyze the effect of credit risk management practices on profitability of listed
commercial banks at Nairobi Security Exchange in Kenya. A descriptive research design was adopted. The
population comprised of listed commerical banks where a sample of 55 employees was purposively sampled. It
was established that credit appraisal practices had a significant positive effect on profitability and that it
explained 14.4% of the variations in profitability. The results also found that credit monitoring had a
significative positive effect on profitability and that 47.8% of the variance in profitability. The findings further,
indicated that debt collection practices had a positive and significant relationship and explained 17.4% of the
variations in profitability. Lastly, the results indicated that credit risk governance had a positive and significant
effect on profitability. Based on the study findings the study concluded that credit appraisal, debt collection and
credit risk governance have a significant positive effect on profitability. It is thus recommended that commercial
banks should have stringent credit appraisal and debt collection policies, credit personnel at all levels must
work in co-ordination in order to ensure that credit is collected in a timely manner and banks should also adopt
credit risk governance frameworks which can be attained by making the process of interaction between senior
management and the Board more effective
Chatty Kathy - UNC Bootcamp Final Project Presentation - Final Version - 5.23...John Andrews
SlideShare Description for "Chatty Kathy - UNC Bootcamp Final Project Presentation"
Title: Chatty Kathy: Enhancing Physical Activity Among Older Adults
Description:
Discover how Chatty Kathy, an innovative project developed at the UNC Bootcamp, aims to tackle the challenge of low physical activity among older adults. Our AI-driven solution uses peer interaction to boost and sustain exercise levels, significantly improving health outcomes. This presentation covers our problem statement, the rationale behind Chatty Kathy, synthetic data and persona creation, model performance metrics, a visual demonstration of the project, and potential future developments. Join us for an insightful Q&A session to explore the potential of this groundbreaking project.
Project Team: Jay Requarth, Jana Avery, John Andrews, Dr. Dick Davis II, Nee Buntoum, Nam Yeongjin & Mat Nicholas
Explore our comprehensive data analysis project presentation on predicting product ad campaign performance. Learn how data-driven insights can optimize your marketing strategies and enhance campaign effectiveness. Perfect for professionals and students looking to understand the power of data analysis in advertising. for more details visit: https://bostoninstituteofanalytics.org/data-science-and-artificial-intelligence/
StarCompliance is a leading firm specializing in the recovery of stolen cryptocurrency. Our comprehensive services are designed to assist individuals and organizations in navigating the complex process of fraud reporting, investigation, and fund recovery. We combine cutting-edge technology with expert legal support to provide a robust solution for victims of crypto theft.
Our Services Include:
Reporting to Tracking Authorities:
We immediately notify all relevant centralized exchanges (CEX), decentralized exchanges (DEX), and wallet providers about the stolen cryptocurrency. This ensures that the stolen assets are flagged as scam transactions, making it impossible for the thief to use them.
Assistance with Filing Police Reports:
We guide you through the process of filing a valid police report. Our support team provides detailed instructions on which police department to contact and helps you complete the necessary paperwork within the critical 72-hour window.
Launching the Refund Process:
Our team of experienced lawyers can initiate lawsuits on your behalf and represent you in various jurisdictions around the world. They work diligently to recover your stolen funds and ensure that justice is served.
At StarCompliance, we understand the urgency and stress involved in dealing with cryptocurrency theft. Our dedicated team works quickly and efficiently to provide you with the support and expertise needed to recover your assets. Trust us to be your partner in navigating the complexities of the crypto world and safeguarding your investments.
Opendatabay - Open Data Marketplace.pptxOpendatabay
Opendatabay.com unlocks the power of data for everyone. Open Data Marketplace fosters a collaborative hub for data enthusiasts to explore, share, and contribute to a vast collection of datasets.
First ever open hub for data enthusiasts to collaborate and innovate. A platform to explore, share, and contribute to a vast collection of datasets. Through robust quality control and innovative technologies like blockchain verification, opendatabay ensures the authenticity and reliability of datasets, empowering users to make data-driven decisions with confidence. Leverage cutting-edge AI technologies to enhance the data exploration, analysis, and discovery experience.
From intelligent search and recommendations to automated data productisation and quotation, Opendatabay AI-driven features streamline the data workflow. Finding the data you need shouldn't be a complex. Opendatabay simplifies the data acquisition process with an intuitive interface and robust search tools. Effortlessly explore, discover, and access the data you need, allowing you to focus on extracting valuable insights. Opendatabay breaks new ground with a dedicated, AI-generated, synthetic datasets.
Leverage these privacy-preserving datasets for training and testing AI models without compromising sensitive information. Opendatabay prioritizes transparency by providing detailed metadata, provenance information, and usage guidelines for each dataset, ensuring users have a comprehensive understanding of the data they're working with. By leveraging a powerful combination of distributed ledger technology and rigorous third-party audits Opendatabay ensures the authenticity and reliability of every dataset. Security is at the core of Opendatabay. Marketplace implements stringent security measures, including encryption, access controls, and regular vulnerability assessments, to safeguard your data and protect your privacy.
As Europe's leading economic powerhouse and the fourth-largest hashtag#economy globally, Germany stands at the forefront of innovation and industrial might. Renowned for its precision engineering and high-tech sectors, Germany's economic structure is heavily supported by a robust service industry, accounting for approximately 68% of its GDP. This economic clout and strategic geopolitical stance position Germany as a focal point in the global cyber threat landscape.
In the face of escalating global tensions, particularly those emanating from geopolitical disputes with nations like hashtag#Russia and hashtag#China, hashtag#Germany has witnessed a significant uptick in targeted cyber operations. Our analysis indicates a marked increase in hashtag#cyberattack sophistication aimed at critical infrastructure and key industrial sectors. These attacks range from ransomware campaigns to hashtag#AdvancedPersistentThreats (hashtag#APTs), threatening national security and business integrity.
🔑 Key findings include:
🔍 Increased frequency and complexity of cyber threats.
🔍 Escalation of state-sponsored and criminally motivated cyber operations.
🔍 Active dark web exchanges of malicious tools and tactics.
Our comprehensive report delves into these challenges, using a blend of open-source and proprietary data collection techniques. By monitoring activity on critical networks and analyzing attack patterns, our team provides a detailed overview of the threats facing German entities.
This report aims to equip stakeholders across public and private sectors with the knowledge to enhance their defensive strategies, reduce exposure to cyber risks, and reinforce Germany's resilience against cyber threats.
1. Title: Increased earthquake depth is associated with increased magnitude
Beca Marușa
Title: Decreased FICO score is associated with increased interest rate
Introduction:
Lending Club is an online financial community that brings together creditworthy
borrowers and savvy investors so that both can benefit financially [1]. It allows its
members to directly invest in and borrow from each other and so avoid the cost and
complexity of the banking system.
On the Lending Club site there are several files that contain complete loan data, including
the current loan status and latest payment information. [2] The data used in this analysis
represents a sample of 2,500 peer-to-peer loans issued by the Lending Club explained
through 14 variables such as: monthly income, amount requested, FICO range (a range
indicating the applicants FICO score) [3], inquiries in the last six months etc. The goal of
this analysis is to establish if there is any correlation between the outcome variable – the
interest rate of the loans – and the other variables especially considering the FICO score,
which is a measure of the creditworthiness of the applicant.
In this project we performed an analysis to determine if there was a significant association
between the interest rate and the FICO score. Using exploratory analysis and standard
multiple regression techniques we show that there is a significant negative relationship
between the interest rate and the FICO score, even after adjusting for important
confounders such as the length of the loan, the amount funded by the investors and the
amount requested by the borrowers.
Our analysis suggests that there is a significant, negative association between Interest
Rate and FICO score. Our analysis estimates the relationship using a linear model relating
one percent of interest rate to one unit of FICO score. There appears to be a strong inverse
relationship between the two variables.
Our results suggest that there are other variables such as loan length, amount requested by
the borrower and amount funded by the investors which are associated with both interest
rate and FICO score. Including these variables in the regression model relating interest
rate to FICO score improves the model fit, but does not remove the significant positive
relationship between the variables.
Methods:
Data Collection
For our analysis we used the data loans from the Lending Club site from 2007 to 2011.
The data were downloaded from lendingclub.com on November 16, 2013 using the R
programming language [3].
Exploratory Analysis
Exploratory analysis was performed by examining tables and plots of the observed data.
We identified transformations to perform on the raw data on the basis of plots and
knowledge of the scale of measured variables. Exploratory analysis was used to (1)
identify missing values, (2) verify the quality of the data, and (3) determine the terms
used in the regression model relating interest rate to FICO score.
Statistical Modeling
1 /9
2. Title: Increased earthquake depth is associated with increased magnitude
Beca Marușa
To relate interest rate to FICO score we performed a standard multivariate linear
regression model [4]. Model selection was performed on the basis of our exploratory
analysis and prior knowledge of the relationship between interest rate and FICO score,
amount of the loan requested and the length in time of the loan. Coefficients were
estimated with ordinary least squares and standard errors were calculated using standard
asymptotic approximations [5].
Reproducibility
All analyses performed in this manuscript are reproduced in the R markdown file
loansdata.Rmd [6]. To reproduce the exact results presented in this manuscript the cached
version of the analysis must be performed.
Results:
The loans data used in this analysis contains information on the amount requested by the
borrower (Amount.Requested), the amount funded by the investors
(Amount.Funded.By.Investors), the lending interest rate (Interest.rate), the length in time
(in months) of the loan (Loan.Length), the purpose of the loan as stated by the applicant
(Loan.Purpose), the percentage of consumer’s gross income that goes toward paying
debts (Debt.To.Income.Ratio), the U.S. state of residence of the loan applicant (State), the
ownership type of the home (Home.Ownership), the monthly income of the applicant (in
dollars) (Monthly.income), a range indicating the applicants FICO score (FICO.range),
the number of open lines of credit the applicant had at the time of application
(Open.CREDIT.Lines), the total amount outstanding all lines of credit
(Revolving.CREDIT.Balance), the number of authorized queries about the
creditworthiness of the applicant in the 6 months before the loan was issued
(Inquiries.in.the.Last.6.Months), the length of time employed at current job
(Employment.Length). [5].
We identified 77 missing values in the data set we collected for the variable Employment
Length, one missing value for the variable Monthly Income, 2 missing values each for the
variables the number of open lines of credit the applicant had at the time of application
(Open.CREDIT.Lines), the total amount outstanding all lines of credit
(Revolving.CREDIT.Balance), the number of authorized queries about the
creditworthiness of the applicant in the 6 months before the loan was issued
(Inquiries.in.the.Last.6.Months).
Three measured variables were outside the standard ranges: for the variable Home
Ownership there are five options (none, other, owns, rents or has a mortgage), although
there must have been only three: owns, rents or has a mortgage and for the variable
Amount Funded by the Investors there are 2 negative values and 4 values of 0; for the
variable the percentage of consumer’s gross income that goes toward paying debts
(Debt.To.Income.Ratio) there are 8 values of 0% which we consider that must be
removed because it represents the percentage of consumer’s gross income that goes
toward paying the loans that were approved.
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3. Title: Increased earthquake depth is associated with increased magnitude
Beca Marușa
After removing the missing values and the observations that were outside the standard
ranges, the data now has 2403 observations and 14 variables.
From the barplot of the variable FICO range we can see that the distribution is positively
skewed with a long right tail (figure 1).
Figure 1. Histogram of FICO Range
The histogram of the interest rate shows a relatively normal distribution with mean 13
(figure 2). The majority of the loans granted had an interest rate between 10,2% and
15,8%.
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4. Title: Increased earthquake depth is associated with increased magnitude
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Figure 2. Histogram of Interest rate
We performed some exploratory analysis and from the boxplots of the interest rate
variable and the factor variables we observed that the monthly income of the borrower,
the employment length, the type of the home ownership and the state from which was the
borrower don’t have any impact on the size of the interest rate of the loan granted. The
variables Loan Purpose, Open Credit Lines, Revolving Credit Balance, Inquiries in the
last 6 months and Debt to income ratio have little correlation with the interest rate
variable. The potential confounders are: the length of the loan, the amount founded by the
investors and the amount requested by the borrowers.
We decided to transform the variable FICO range into the variable FICO score which
represent the average of the low number and the upper number of a FICO range for each
observed loan granted. Subsequent analyses focus on this transformed FICO score
variable. From the boxplot of the FICO range and interest rate we can observe a strongly
negative association between the two (figure 3). The correlation coefficient between the
interest rate and FICO score is -71%.
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5. Title: Increased earthquake depth is associated with increased magnitude
Beca Marușa
Figure 3. The Boxplot between the Interest Rate and FICO Range
We first fit a regression model relating interest rate to FICO score (figure 4). Taking into
consideration that the multiple R squared is 50,3% which is not equal to the correlation
coefficient of 71%, it means that there are confounders that explain the rest of 49,7% of
the variation of the variable interest rate.
Figure 4. The relationship between the Interest Rate and FICO score
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6. Title: Increased earthquake depth is associated with increased magnitude
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The correlation coefficient between the amount funded by the investors and the interest
rate is 33%. The same coefficient is for the amount requested by the borrowers and the
association between the interest rate and the loan length is 42%. The mean of the residuals
is approx. 0, the variance is 8,6 and they follow a normal distribution positively skewed
(figure 5).
Figure 5. Residuals distribution for the linear model
Residuals show patterns of non-random variation (figure 6). We attempted to explain
those patterns by fitting models including potential confounders.
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7. Title: Increased earthquake depth is associated with increased magnitude
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Figure 6. The variation of residuals
Our final regression model was: Interest.Rate = b0 + b1*FICO.score +
b2*Amount.Funded.By.Investors + b3*Amount.Requested + f(Length.Loan) + e,
where b0 is an intercept term and b1 represents the change in Interest rate associated with a
change of one unit in FICO score at the same amount funded by investors, amount
requested by borrowers and the same loan length of time. The term f(Length.Loan)
represents a factor model with two different levels. This model explains 75% of the
variation by one percent in the interest rate variable. The P-values show that all the
coefficients are statistically significant.
The error term e represents all sources of unmeasured and unmodeled random variation in
interest rate. Our final regression model appeared to remove most of the non-random
patterns of variation in the residuals. We observe that the residuals for the multivariate
linear model follow a normal distribution with mean 0 and variation 4,38 (figure 7).
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8. Title: Increased earthquake depth is associated with increased magnitude
Beca Marușa
Figure 7. Residuals distribution for multivariate linear regression
From figure 8 we notice that the residuals’ variation for the multivariate linear model is
smaller and that we can say it follows a White Noise frequency.
Figure 8. Variation of residuals for multivariate linear model
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9. Title: Increased earthquake depth is associated with increased magnitude
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We observed a highly statistically significant (P = 2e-16) association between interest rate
and FICO score. A change of one percent in Interest Rate corresponded to a change of b1
= -0.08 FICO score (95% Confidence Interval: -0.088, -0.081).
For example, for two loans at the same loan length, amount requested by the borrower,
amount funded by the investors, we would expect an interest rate to increase by 1% at
every 0.08 decrease in the FICO score.
Conclusions:
Our analysis suggests that there is a significant, negative association between Interest
Rate and FICO score. Our analysis estimates the relationship using a linear model relating
one percent of interest rate to one unit of FICO score. There appears to be a strong inverse
relationship between the two variables.
We also observed that other variables such as loan length, amount requested by the
borrower and amount funded by the investors are associated with both interest rate and
FICO score. Including these variables in the regression model relating interest rate to
FICO score improves the model fit, but does not remove the significant positive
relationship between the variables.
Our analysis may be of interest to both investors and borrowers. Investors are interested
in selecting the potential borrowers on the financial market at a low cost, to establish a
fair interest rate and, in consequence, to build an efficient portfolio with a high return rate.
Borrowers are also concerned in obtaining better interest rates at low costs. It could also
be of interest to the Lending Club to support its members in selecting the proper partners.
References
1. LendingClub Corporation. URL: https://www.lendingclub.com/public/about-us.action
Accessed 09/16/2014.
2. LendingClub Corporation. URL: https://www.lendingclub.com/info/download-data.
action, Accessed 09/16/2014
3. http://en.wikipedia.org/wiki/Credit_score_in_the_United_States
4. LendingClub Corporation. URL: https://spark-public.
s3.amazonaws.com/dataanalysis/loansData.csv Accessed 09/16/2014
5. https://spark-public.s3.amazonaws.com/dataanalysis/loansCodebook.pdf
6. R Markdown Page. URL:http://www.rstudio.com/ide/docs/authoring/using_markdown.
Accessed 09/16/2014
9 /9
10. Title: Increased earthquake depth is associated with increased magnitude
Beca Marușa
We observed a highly statistically significant (P = 2e-16) association between interest rate
and FICO score. A change of one percent in Interest Rate corresponded to a change of b1
= -0.08 FICO score (95% Confidence Interval: -0.088, -0.081).
For example, for two loans at the same loan length, amount requested by the borrower,
amount funded by the investors, we would expect an interest rate to increase by 1% at
every 0.08 decrease in the FICO score.
Conclusions:
Our analysis suggests that there is a significant, negative association between Interest
Rate and FICO score. Our analysis estimates the relationship using a linear model relating
one percent of interest rate to one unit of FICO score. There appears to be a strong inverse
relationship between the two variables.
We also observed that other variables such as loan length, amount requested by the
borrower and amount funded by the investors are associated with both interest rate and
FICO score. Including these variables in the regression model relating interest rate to
FICO score improves the model fit, but does not remove the significant positive
relationship between the variables.
Our analysis may be of interest to both investors and borrowers. Investors are interested
in selecting the potential borrowers on the financial market at a low cost, to establish a
fair interest rate and, in consequence, to build an efficient portfolio with a high return rate.
Borrowers are also concerned in obtaining better interest rates at low costs. It could also
be of interest to the Lending Club to support its members in selecting the proper partners.
References
1. LendingClub Corporation. URL: https://www.lendingclub.com/public/about-us.action
Accessed 09/16/2014.
2. LendingClub Corporation. URL: https://www.lendingclub.com/info/download-data.
action, Accessed 09/16/2014
3. http://en.wikipedia.org/wiki/Credit_score_in_the_United_States
4. LendingClub Corporation. URL: https://spark-public.
s3.amazonaws.com/dataanalysis/loansData.csv Accessed 09/16/2014
5. https://spark-public.s3.amazonaws.com/dataanalysis/loansCodebook.pdf
6. R Markdown Page. URL:http://www.rstudio.com/ide/docs/authoring/using_markdown.
Accessed 09/16/2014
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