Practical Data Science using Python - EDA Project - 6

The video tutorial explores the relationship between loan grades, subgrades, and default ratios at Lending Club. It highlights the use of visualization and the crosstab function to analyze data, revealing insights into high default ratios across certain grades and subgrades. The analysis extends to loan terms, employer impact, and verification status, providing actionable insights for Lending Club to address high default rates. The tutorial also suggests exercises for further analysis, such as examining state-specific default ratios and cyclical influences.

What is the primary purpose of using grades and subgrades in loan products?

• To categorize different loan products

• To determine the borrower's credit score

• To calculate the interest rate

• To assess the borrower's income level

What does the crosstab function help analyze in the context of loan data?

• The borrower's employment history

• The total number of loans disbursed

• The relationship between loan grades and default ratios

• The interest rates of different loans

Which loan grade was found to have the highest default ratio?

• Grade A

• Grade C

• Grade G

• Grade E

What insight was revealed about loans with longer terms?

• They have lower default ratios

• They have higher default ratios

• They have the same default ratio as shorter-term loans

• They are more popular among borrowers

Which employer was identified as having a high default ratio among its employees?

• Google

• UPS

• U.S. Army

• IBM

What was unexpected about the default ratios in relation to verification status?

• Source verified borrowers had no defaults

• Verified borrowers had a higher default ratio than expected

• Not verified borrowers had the highest default ratio

• Verified borrowers had the lowest default ratio

What was the conclusion about the cyclical influence on default ratios?

• There is a strong seasonal pattern

• There is no significant seasonal pattern

• Defaults are lowest in summer months

• Defaults are highest in winter months