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Category: E20-007 (v.1)

Exam e20-007: Data Science Associate (update June 28th, 2015)

Which interpretation is supported by the analysis?

Refer to the exhibit.

You are asked to write a report on how specific variables impact your client’s sales using a data
set provided to you by the client. The data includes 15 variables that the client views as directly
related to sales, and you are restricted to these variables only.
After a preliminary analysis of the data, the following findings were made:
1. Multicollinearity is not an issue among the variables
2. Only three variables—A, B, and C—have significant correlation with sales
You build a linear regression model on the dependent variable of sales with the independent
variables of A, B, and C. The results of the regression are seen in the exhibit.
Which interpretation is supported by the analysis?

Which analytical method could produce the probabilities needed to build this exhibit?

Refer to the exhibit.

In the exhibit, the x-axis represents the derived probability of a borrower defaulting on a loan. Also
in the exhibit, the pink represents borrowers that are known to have not defaulted on their loan,
and the blue represents borrowers that are known to have defaulted on their loan.
Which analytical method could produce the probabilities needed to build this exhibit?


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