Table 1 shows the training dataset for this problem. For simplicity the size has been limited to five records a very small dataset. Low Yes Poor Table 1. Credit risk training dataset. Debt, income, and marital status are the independent variables.
Credit risk is the dependent variable or the outcome.
This dataset contains information about people to whom the institution previously loaned money. The lender determined if each applicant was a good or poor credit risk. Because Risk is what we wish to predict, it is the dependent column, also called the target variable. The other columns used to build the model are known as independent columns. The Name column will be ignored because it is highly unlikely that a person s name affects his credit risk.