Business Understanding

Business Objective(s)
To lead customers to FPC for more focused personal financial advice about home loans.

Data Analytics Goals

Identify a profile for people who are most likely to be awarded a certain type of home loan. Identify whether interested individuals are most likely to be approved or not approved for a home loan.

Data Understanding & Manipulation

Explanation of Variables
Identify information needed to predict the probability of whether someone receives a loan or not. For Logistic regression model:

Dependent(Y) variable = Approved

Independent(X) variables: Loan_type Property_type Loan_purpose Loan_amount_ink Applicant_income_ink Applicant Sex.
2

Data Manipulation (City: Akron)

Deleted columns with missing data. Deleted columns with same values. Y variable - APPROVED by excluding all action types > 3 and then making values 1-2 = 1 and values of 3 = 0. Created a new independent variable for applicant sex, removing values 3, 4 and 5, which was information not provided.