Book Image

Statistical Application Development with R and Python - Second Edition

Book Image

Statistical Application Development with R and Python - Second Edition

Overview of this book

Statistical Analysis involves collecting and examining data to describe the nature of data that needs to be analyzed. It helps you explore the relation of data and build models to make better decisions. This book explores statistical concepts along with R and Python, which are well integrated from the word go. Almost every concept has an R code going with it which exemplifies the strength of R and applications. The R code and programs have been further strengthened with equivalent Python programs. Thus, you will first understand the data characteristics, descriptive statistics and the exploratory attitude, which will give you firm footing of data analysis. Statistical inference will complete the technical footing of statistical methods. Regression, linear, logistic modeling, and CART, builds the essential toolkit. This will help you complete complex problems in the real world. You will begin with a brief understanding of the nature of data and end with modern and advanced statistical models like CART. Every step is taken with DATA and R code, and further enhanced by Python. The data analysis journey begins with exploratory analysis, which is more than simple, descriptive, data summaries. You will then apply linear regression modeling, and end with logistic regression, CART, and spatial statistics. By the end of this book you will be able to apply your statistical learning in major domains at work or in your projects.
Table of Contents (19 chapters)
Statistical Application Development with R and Python - Second Edition
Credits
About the Author
Acknowledgment
About the Reviewers
www.PacktPub.com
Customer Feedback
Preface
Index

Logistic regression for the German credit screening dataset


Millions of applications are made to a bank for a variety of loans! The loan may be a personal loan, home loan, car loan, and so forth. From a bank perspective, loans are an asset for them as obviously the customer pays them interest and over a period of time the bank makes profit. If all the customers promptly pay back their loan amount, all their tenure equated monthly installment (EMI) or the complete amount on preclosure of the principal amount, there is only money to be made.

Unfortunately, it is not always the case that the customers pay back the entire amount. In fact, the fraction of people who do not complete the loan duration may also be very small, say about five percent. However, a bad customer may take away the profits of may be 20 or more customers. In this hypothetical case, the bank eventually makes more losses than profit and this may eventually lead to its own bankruptcy.

Now, a loan application form seeks a lot...