References
Adler, Joe. 2015. "Supreme Court Backs 'Disparate Impact' Theory in Texas Case." American Banker, Law & Regulation, June 25, 2015. Accessed 3/2/2016.
Clements, Nick. 2015. "Exponential Growth of Online Personal Loans Threatens Credit Card Profits." Forbes, Investing, April 7, 2015. Accessed 3/3/2016.
Cowley, Stacy. 2015. "Lawmakers Ask for Information About Online Lending." The New York Times, Business Day, November 12, 2015. Accessed 3/2/2016.
Fisman, Ray and Michael Luca. 2016. "Fixing Discrimination in Online Marketplaces." Harvard Business Review, Internet, December 2016. Accessed 1/31/2017.
Fortmann-Roe, Scott. 2012. "Understanding the Bias-Variance Tradeoff." scott.fortmann-roe.com. Accessed 3/2/2016.
Green, Matthew. 2015. "How Redlining Maps Encouraged Segregation in California's Cities." KQED News, National Policy, July 13, 2015. Accessed 12/13/2016.
Hill, Thomas. 2014. "10 Ways Federal Reserve Interest Rates Affect You Every Day." GO BankingRates, Interest Rates, August 9, 2014. Accessed 2/1/2017.
Kennedy, Susan. 1989. "The small number problem and the accuracy of spatial databases." Chapter 16 in The Accuracy of Spatial Databases, Goodchild and Gopal, editors. New York: Taylor & Francis. Accessed 3/2/2016, https://books.google.com/books?id=HL2O6J-XtLAC&pg=PA121&dq=Susan+Kennedy+Chapter+16&hl=en&sa=X&ved=0ahUKEwj3parUi77KAhVFxWMKHV_CDJ4Q6AEIWjAI#v=onepage&q=Susan%20Kennedy%20Chapter%2016&f=false
Knight, Brian. 2015. "Marketplace Lending's Rough Time in Court." Milken Institute, Currency of Ideas, July 02, 2015. Accessed 3/2/2016.
Lichtenwald, Ryan. 2016. "Lending Club and Proper Interest Rates, Loss Curve and Loan Performance." Lend Academy, February 22, 2016. Accessed 3/7/2016.
Renton, Peter. 2011. "How Lending Club and Prosper Set Interest Rates." Lend Academy, November 7, 2011. Accessed 3/7/2016.
Rubin, Gabe. 2015. "Growing Popularity of Online Lending Could Presage Greater Regulatory Scrutiny." Morning Consult, July 1, 2015. Accessed 3/2/2016.
Scott-Briggs, Angela. 2017. "Insights into the Consumer Online Lending Market." TechBullion, Finance News, January 13, 2017. Accessed 1/31/2017.
Tracy, Ryan and Peter Rudegeair. 2015. "U.S. Treasury Looks Into Online Marketplace Lending Industry." The Wall Street Journal, Markets, July 16, 2015. Accessed 3/2/2016.
Photo attribution
Money Cash | By Jericho [CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons |
Data attribution
Loan data August 2007 to September 2015 | Obtained from the Lending Club website. Accessed 10/2015 and 3/8/2016. |
Summary of tools
This case study demonstrates a number of analytical methods that can be adapted to many different application areas, allowing you to answer a variety of questions.
| Method | Generic Question | Examples |
|---|---|---|
Attribute Query (Select Layer By Attribute) | Which features have the characteristics I'm interested in? | Which ZIP Codes have had a minimum of 30 online loans funded? Which neighborhoods have suppressed data? Which districts have more than 50,000 people and median annual incomes larger than $50,000? Which hospitals have readmission rates larger than 10 percent? |
Hot Spot Analysis of feature attributes | Where do high and low values cluster together? | Where are the statistically significant clusters of online submission rates, linguistic diversity, poverty, unemployment, wealth, beer drinkers, lead levels, or college graduates? |
Which explanatory variables are effective predictors of what I'm interested in? | Are average loan grade rankings an effective predictor of average interest rates? What are the key variables that explain high forest fire frequency? What demographic characteristics contribute to high rates of public transportation usage? Why are cancer rates so high in particular locations? | |
Where is each explanatory variable a strong (or weak) predictor of what I'm interested in? | Where are the average loan grade rankings an effective predictor of average interest rates and where are they not effective? Where is income a strong predictor of luxury TV purchases? Where are suicides a key variable explaining low life expectancy? Where are teacher-to-student ratios a good predictor of test score results? |
In addition, you used data manipulation and management tools including Add Field and Calculate Field.
Learn more
A number of resources are available to help you learn more about the analyses demonstrated in this case study:
- What is spatial analysis in ArcGIS?
- Spatial Statistics resources
- Learn more about hot spot analysis
- Regression Analysis Basics
- Answering Why Questions: An introduction to regression analysis with spatial data
- What they don't tell you about regression analysis
- Spatial Data Mining I: Essentials of Cluster Analysis
- Spatial Data Mining II: A Deep Dive Into Space-Time Analysis
Acknowledgments
Jonathan Blum was instrumental to the analysis and writing of this case study. Thank you!