I do services for banking and I need help to find the correlation between two variables. Interestingly I need to do with character variables and below are the sample data.
Our task is to sell loan products. Eg: many occasions people who brought mortgage loan is likely to buy auto loan.
Similarly I need to identify the loan products which has correlation.
product_dsc loan_amt
AUTO LOAN 26,698.65
AUTO LOAN 15,000.00
AUTO LOAN 15,200.00
Used Auto 7,194.00
Personal loan 1,000.00
Used Auto 23,000.00
Used Auto 12,400.00
Any help would be really appreciated.
You need to focus the count number of person who have a loan not load amount , then use proc freq or proc corresp .
Thanks Ksharp.
So you're suggesting me to use proc corresp instead of Proc corr because of character variables? My assignment is on correlation and I will be worried if we don't have relationship between proc corresp and proc corr
Yes. proc freq also can compute person,spearman correlation coefficient for category variable ,but you need frequency of people , check documentation.
BTW, you also could try proc corr ,but that will give you person product-moment correlation coefficient if you have data like
name home_load auto_load
Arthur.T 23 45
Peter.E 34 45
KSharp 56 78
Xia Keshan
Hi,
Change your data structure to run correlation analysis. Identify people who are having more than one loan (auto_loan, used_auto etc.) then using proc corr can give some idea about the customers' behavior.
Id AUTO_LOAN Used_Auto
1 26,698.65 7,194.00
2 15,000.00 23,000.00
3 15,200.00 12,400.00
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