![]() ![]() ![]() ![]() ![]() ![]() ![]() Setting the random seed allows you to replicate the random selection of cases in this analysis.
Transform
Transform
This sets the values of validate to be randomly generated Bernoulli variates with probability parameter 0.7. You only intend to use validate with cases that could be used to create the model; that is, previous customers. However, there are 150 cases corresponding to potential customers in the data file.
This ensures that validate is only computed for cases with non-missing values for default; that is, for customers who previously received loans.
Approximately 70 percent of the customers previously given loans will have a validate value of 1. These customers will be used to create the discriminant function. The remaining customers who were previously given loans will be used to validate the model results. |
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Preparing the Data for Analysis |