Report On The Distribution Of Values

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Questions 1.

(a) Explore the data. Report on the distribution of values in the attributes and how they individually relate to the outcome of interest (dependent variable).

All the attributes are combination of categorical and numeric values and cover varied ranges. Each attribute was studied along with analyzing histograms, scatterplots and log-scaled graphs. The findings are listed below with the graphs of each attribute distribution in Section B.

(i) Borrower’s age (Bo_Age):
Borrower’s age shows an overall right skewed distribution with a maximum at 36. The distribution for only defaulters shows a
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(vi) Borrower’s total monthly debt expense (Tot_mthly_debt_exp):
Total monthly debt expense of borrower’s has a range from 0 to 17225 with an average of about 1745. The distribution of the total data as well as the defaulters is suggestively right skewed with most of the defaulters belonging to the class of borrower’s below
(vii) Borrower’s total monthly income (Tot_mthly_incm):
Borrower’s monthly income has a distribution similar to the monthly debt expense distribution and has a range from 500 to 65000 with an average of 5025. The graph also shows that most of the defaulters are from the low-income group with there being no defaulters with a monthly income of 15000 or higher.

(viii) Appraised value of home at origination (orig_apprd_val_amt):
Appraised value of homes also has a right skewed distribution with fewer records of houses with high appraised value and even fewer defaulters in that region. No defaulter was recorded for a house with an appraised value greater than 400,000.

(ix) Purchase price for house (pur_prc_amt):
Purchase price for houses shows a distribution very similar to appraised values with low frequency of borrowers for houses with high purchase price and no defaulter for a house more expensive than 400,000.

(x) Borrower debt to income ratio (DTI ratio):
Debt to income ratio is calculated by
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