
Explore credit risk modeling and machine learning in Stata, including data exploration, variable types, and preprocessing with dummy coding and weight of evidence.
Explore what credit risk means in banking, from the loan process and scoring model to default probability, and learn about mortgage, credit card, and asset financing loans.
Explain the difference between expected and unexpected losses and the three components of expected losses, namely probability of default, loss given default, and exposure at default, using rating-based default risk.
Learn how to import an Excel spreadsheet into Stata, set first row as variable names, inspect string and numeric variables, save the dataset, and capture commands in a do file.
Import data from an Excel spreadsheet into stata, use the first row as variable names, view a two-variable numeric dataset, and save via the command line for reproducible do-file workflow.
Explore the Stata interface, including the command line, menus, and data workflows from open to import and export, describe and manage variables, and generate graphics for machine learning.
Merge two data sets in Stata using the client ID key, handle 1-to-1, many-to-one, or many-to-many joins, and verify with summary statistics.
Combine multiple histograms in Stata using graph combine to compare distributions of loan disbursed, monthly income, client banking years, and work experience, and save graphs for reports.
Learn to create histograms in Stata, visualize distributions for continuous and discrete data, customize bins and axes, and save the commands in a do file for reuse.
Learn to edit histograms in Stata using the graph editor, tune graph properties, colors, margins, and titles, and save outputs as png for publications.
Visualize category data in Stata using bar charts and pie charts, comparing frequencies and percentage shares for gender (female vs male) and saving work with a do file.
Explore visualizing category data in stata by creating and combining bar charts for rural versus urban areas and educational grades, using frequency and percentage views to reveal distribution.
Explore how scatter plots reveal relationships between variables, including linear, parabolic, negative, and exponential patterns, and distinguish strong versus weak correlations. Learn to plot these relationships in Stata.
Create and compare scatter plots in Stata to explore monthly income versus work experience, filtering by gender, using two-way graphs, colors and symbols, and adding a fitted regression line.
Inspect data types and distributions in Stata using describe and inspect to quickly assess continuous variables, zeros, and patterns like exponential distribution.
Learn to use the sum command in STATA to summarize variables, report mean, standard deviation, min, max, percentiles, and skewness, and distinguish numeric from categorical data.
Use the encode command in Stata to convert string variables like gender and education into numeric codes, enabling descriptive statistics and preparation for regression and machine learning.
Compute weight of evidence for gender and other categories in STATA, using column percentages and the natural logarithm to gauge association, and prepare for logistic regression in this course.
Compute the weight of evidence for relationship status and education to select regression predictors, using married as the reference, bachelor's degree as the contrast, and excluding categories with few observations.
Compute the weight of evidence for grade and work sector using log ratios, select higher-woe categories for regression, and address a data entry error in the dataset.
Analyze the distribution of installments with a histogram, assess the cumulative probability, and apply fine classing by dividing observations into 20% percentile groups to create balanced default and non-default categories.
Combine installment groups into a four-category indicator and create four dummy variables to enable tabulation and weight of evidence.
Learn to compute weight of evidence for loan installments using association tables, comparing dummy installments with default indicators, and select regression variables from a balanced dataset.
Generate dummy variables for gender and relationship status in STATA, coding male as 1 and encoding four statuses (divorced, married, single, widowed) before machine learning or logistic regression analysis.
Generate dummy variables for work sector and education level, tabulate to create labeled dummies with reference categories, and set a bachelor's degree indicator to 1 for university degree.
Split the data into 80 percent training and 20 percent testing to train the model on the 80 percent and validate on unseen data, using a random uniform assignment.
Run logistic regression (logit) with categorical predictors, including default, instalments, maturity, and sector, and train on the estimation sample to observe 3,903 observations and interpret results.
Hello and welcome to the Machine Learning with STATA course. Machine Learning is influencing our daily lives and is one of the most significant aspects of technological advancements. The goal of this course is to provide you with the most up-to-date Machine Learning methodologies using STATA . It will teach you how to think about data science and machine learning in a new way. This is an excellent approach to begin a career in Machine Learning because you will learn some fundamental principles and receive practical experience. I'm thrilled to share what I know about Machine Learning using STATA with you. I assure you that it will be well worth your time and effort, and that you will gain a vital skill.
Based on our research this is the only course that uses STATA to apply Machine Learning Models in Credit Risk Scenario. Because we know that many of you are already familiar with STATA or want to be familiar, we chose it as our platform. From the beginning to the finish of the course, we will start from scratch and work together to build new abilities. In this course, we will work together to create a complete data science project utilizing Credit Risk Data from start to finish. For this course, we have information on around 40,000 consumers, including their level of education, age, marital status, where they live, if they own a home, and other pertinent information.
We'll get our hands filthy with these numbers and dig deep into them, and you'll be able to practice on your own. Additionally, you will have access to essential resources like as lectures, homework, quizzes, slides, and a literature analysis on modeling methodologies. Let's see what the course structure looks like right now!