ANOVA

Data Analysis in R – Setting Loan Interest Rates

The following chart is the result of a data analysis of loan data for 2500 peer lending loans. The caption at the bottom explains the analysis results. This analysis was performed for the course: Data Analysis from Johns Hopkins University offered through Coursera. So far, it is a great experience. Figure Caption: All of the non-FICO factors that had significant ANOVA p-values are included in the stand-alone figure. Those factors are: (1) loan length, (2) amount requested, (3) amount funded, (4) debt to income ratio, (5) loan purpose, and (6) home ownership. In all charts, interest rate is shown on the Y-axis. Charts 1-3 depict factors confirmed to have significant impact on interest rates using a Tukey-HSD test, while figure 4-6 show factors that had significant ANOVA p-value, but were then determined to have an insignificant impact on interest rate. The overall correlation between FICO score level and interest rate…

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