(Prosper Loan Data Exploration)

by (Aratunde Temitayo Samuel)

Dataset

The dataset can be found in this online storage service where it has been uploaded by udacity here, with feature documentation available here.

Summary of Findings

In the exploration phase, i predicted two features Employment Status and Verifiable income sources will be most likely predictive of my variable of interest but i had to drop the Verifiable income source upon observation of its distribution with respect to the variable of interest.

At the end of this exploration, i was able to deduce that those who satisfy the following conditions are more likely to complete their loans.

1. Employed: whether full time, part time, employed
2. Loan taken for personal reasons.
3. Average credit score between 650 and 750
4. Recommedations >=10

Apart from the main variable of interest, i also observed some relation between some of the numeric variables such as the recommendation count and the count of investment from friends in which i noticed that the more recommendations there are, the more friends invested in the loan. Also, the average credit score range (which was obtained from taking the average of the upper credit score range and the lower credit score range) and the amount of principal payments made before charged off also have slight correlation.

Key Insights for Presentation

For the presentation, i focused on the employment status, Average credit score and Recomendations count. I started by looking at the distribution of the variable of interest LoanStatus followed by the employment status distribution.

I also investigated the other variables one by one plotting their distribution with histograms. Finally, i investigated the effect of these variables on the interaction between loan status and emploment status using both boxplot and point plot.

Acknowledgements

A very big thank you to Access Bank plc and their advance africa scholarship program without which i would not have been able to participate in this program. Also a big shout out to Udacity for their well packaged and sound curriculum. More power to your elbows. Finally, thanks to my parents, teachers and all who have helped me to be who i am today.