Project for the Pattern Recognition Course - Default of credit card clients
This research employed a binary variable, default payment (Yes = 1, No = 0), as the response variable. This study reviewed the literature and used the following 23 variables as explanatory variables:
- X1: Amount of the given credit (NT dollar): it includes both the individual consumer credit and his/her family (supplementary) credit.
- X2: Gender (1 = male; 2 = female).
- X3: Education (1 = graduate school; 2 = university; 3 = high school; 4 = others).
- X4: Marital status (1 = married; 2 = single; 3 = others).
- X5: Age (year).
- X6 - X11: History of past payment. We tracked the past monthly payment records (from April to September, 2005) as follows:
- X6 = the repayment status in September, 2005;
- X7 = the repayment status in August, 2005;
- . . .;
- X11 = the repayment status in April, 2005.
- The measurement scale for the repayment status is:
- -1 = pay duly;
- 1 = payment delay for one month;
- 2 = payment delay for two months;
- . . .;
- 8 = payment delay for eight months;
- 9 = payment delay for nine months and above.
- X12-X17: Amount of bill statement (NT dollar).
- X12 = amount of bill statement in September, 2005;
- X13 = amount of bill statement in August, 2005;
- . . .;
- X17 = amount of bill statement in April, 2005.
- X18-X23: Amount of previous payment (NT dollar).
- X18 = amount paid in September, 2005;
- X19 = amount paid in August, 2005;
- . . .;
- X23 = amount paid in April, 2005.