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472 – Statistical Practice: Challenges Encountered in Government and Industrial Applications
An Example Using Excel Stepwise Regression to Forecast High Risk Automobile Loan Losses
Sponsor: Business and Economic Statistics Section
Keywords: multiple regression, stepwise regression, automobile loan losses
Kris Moore
Baylor University
Jonathan Trower
Baylor University
A multiple regression model to predict losses on high risk automobile loans is found using stepwise regression and seven independent variables for 769 loans. The independent variables used were A. P. R. (annual percentage rate), amount financed, automobile mileage, down payment, credit rating (Auto Zoom), pass time device, and whether or not the customer had a previous repossession.