Lending Club is a peer-to-peer lending company1. Lending Club allows borrowers to take out unsecured personal loans between $1,000 and $40,000. The standard borrowing period is 36 months or 60 months. Investors can browse and search the loan listings on Lending Club’s website and select loans that they want to invest in based on information supplied by Lending Tree (loan grade, loan purpose, debt and income information on borrowers, etc.).

Question One.
a. Create a single table that displays the mean interest rate charged for each combination of loan grade and loan status. Briefly describe any patterns that you observe from the table.
b. Create a table (or expand your table from part a.) so that the number of loans for each combination of loan grade and loan status is also displayed. Briefly describe any pattern(s) that you observe.
c. Construct an appropriate graph for displaying the percentage of loans that are “Charged Off” by loan grade.

Question Two.
a. Construct a graph that displays the number of loans made for each month from June 2007 through December 2011. What, if any, trend do you observe?
b. Modify your graph from part a. to determine if the trend over time is consistent across loan grade (i.e., do you see the same pattern for each grade). What do you find?

Question Three.
Consider the variable rev_util (revolving credit utilization). We would like to learn if this variable may be a good predictor of loan outcome. Construct a table or graph (choice is yours) that helps answer this question. What do you conclude?
Question Four.
Is income related to loan grade? First, filter the data so that only observations having incomes less than $250,000 appear. Use the filtered data to create a pivot table with income as the row variable and loan grade as the column variable. Group income from $0<$50,000;$50,000<$100,000;$100,000<$150,000; $150,000<$200,000;$200,000<$250,000. Use your pivot table to answer the following questions:
a. What is P(Grade A, B, or C |$0<$50,000)
b. What is P(A,B, or C|$100,000<$150,000)?
c. Do these values appear to be significantly different? What does this say about the relationship between income and loan grade

int_rate interest rate
grade loan grade
loan_status loan status
issue_d loan issue date--month and year
revol_util revolving credit utilization
loan_status loan status (outcome fully paid or charged off)
annual_inc annual income
dti debt to income ratio

Lending Club is a peer-to-peer lending company1. Lending Club allo...