SAS Exam A00-240 Topic 2 Question 97 Discussion

Actual exam question for SAS's A00-240 exam

Question #: 97
Topic #: 2

An analyst fits a logistic regression model to predict whether or not a client will default on a loan. One of the predictors in the model is agent, and each agent serves 15-20 clients each. The model fails to converge. The analyst prints the summarized data, showing the number of defaulted loans per agent. See the partial output below:

What is the most likely reason that the model fails to converge?

AThere is quasi-complete separation in the data.

BThere is collinearity among the predictors.

CThere are missing values in the data.

DThere are too many observations in the data.

Show Suggested Answer

Suggested Answer: C

by Sabrina at Sep 19, 2024, 07:28 AM

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Naomi

9 days ago

Hmm, I'm not sure about this one. It could be an issue with collinearity, but the problem seems more likely to be with the separation in the data. I'd go with option A.

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Gaston

11 days ago

Aha! The data shows clear signs of quasi-complete separation - some agents have no defaulted loans, while others have a high proportion. This is likely causing the model to struggle to converge. Option A is the way to go here.

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