In her role as a loan officer at a commercial bank, Sabrina frequently
needs to decide whether to approve a loan application or deny it. The bank has accumulated past data on loan applicants and their loan servicing history including income, employment, liabilities, assets, and whether they defaulted on their loans or not. Sabrina is considering using a suitable analytical technique and the past loans data to help her in loan decisions. Please answer the following two parts of this question.
(A) Describe whether a supervised learning or unsupervised leaning analytical technique would be suitable for this task. Please explain why the type of technique you recommend is more appropriate than the one that you do not recommend.
(B)Consider the following two techniques: (1) Linear programming (2) Logistic regression
Which of these two techniques best suits the task that Sabrina wants to accomplish? Please describe why the particular technique you selected is more suitable for this task and why the other technique ..zis not appropriate.
(C) Specific to the analytical technique you recommended for Sabrina in Part B of this question, identify (list) appropriate variables.