The dataset (CreditData.csv) classifies customers as “approved” or “not approved” (i.e., target class).



ITM 618: Business Intelligence and Analytics

Assignment #2

The dataset (CreditData.csv) classifies customers as “approved” or “not approved” (i.e., target class). The target class is in the 21st column and its name is “Approved”. Value of 1 means approved and value of 2 means not approved.

Number of Attributes for Classification: 20 (7 numerical, 13 categorical).

The task should be developed using R (and in RStudio).



1-  Divide data into two datasets

                                        75% as training data 

                                        25% as test data

              Note: Use this link to learn how to divide one dataset into training and test data: 

2-  Build a classification model based on the training data to predict if               a new customer is approved or not. 

               You can use Regression or Decision Tree (or both to learn more!).

3-  Test the model on the test data. 

4-  Explain the model that you build and report its accuracy (precision).

                                        If you use decision tree, draw the tree. 

                                        If you use regression, report the parameters and weight values. 



1. Source code (copy the R source code in a .txt file)

2. The answer to question 4 as a PDF file. 

Dataset Description:

Here are the attribute description for the dataset:

Attribute 1: (qualitative)
Status of existing checking account

         A11: balance = $0 

         A12: balance ≤ $200K 

         A13: balance > $200K 

 A14: no checking account


Attribute 2: (numerical) Duration of bank membership in month


Attribute 3: (qualitative) Credit history

         A30: no credits taken/all credits paid back duly 

         A31: all credits at this bank paid back duly 

         A32: existing credits paid back duly till now 

         A33: delay in paying off in the past 

 A34: critical account/other credits existing (not at this bank) 

Related Questions in business category

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