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SAS Institute Certified Statistical Business Analyst Using SAS 9: Regression and Modeling Credential Exam Questions 31–35 (page: 8)

Updated On: 9-Feb-2026

An analyst fits a logistic regression model to predict whether or not a client will default on a loan. One of the predictors in the model is agent, and each agent serves 15-20 clients each. The model fails to converge. The analyst prints the summarized data, showing the number of defaulted loans per agent. See the partial output below:


What is the most likely reason that the model fails to converge?

  1. There is quasi-complete separation in the data.
  2. There is collinearity among the predictors.
  3. There are missing values in the data.
  4. There are too many observations in the data.

Answer(s): A



An analyst knows that the categorical predictor, storeId, is an important predictor of the target.

However, store_Id has too many levels to be a feasible predictor in the model. The analyst wants to combine stores and treat them as members of the same class level.

What are the two most effective ways to address the problem? (Choose two.)

  1. Eliminate store_id as a predictor in the model because it has too many levels to be feasible.
  2. Cluster by using Greenacre's method to combine stores that are similar.
  3. Use subject matter expertise to combine stores that are similar.
  4. Randomly combine the stores into five groups to keep the stochastic variation among the observations intact.

Answer(s): B,C



Including redundant input variables in a regression model can:

  1. Stabilize parameter estimates and increase the risk of overfitting.
  2. Destabilize parameter estimates and increase the risk of overfitting.
  3. Stabilize parameter estimates and decrease the risk of overfitting.
  4. Destabilize parameter estimates and decrease the risk of overfitting.

Answer(s): B



An analyst investigates Region (A, B, or C) as an input variable in a logistic regression model. The analyst discovers that the probability of purchasing a certain item when Region = A is 1. What problem does this illustrate?

  1. Collinearity
  2. Influential observations
  3. Quasi-complete separation
  4. Problems that arise due to missing values

Answer(s): C



Refer to the following exhibit:


What is a correct interpretation of this graph?

  1. The association between the continuous predictor and the binary response is quadratic.
  2. The association between the continuous predictor and the log-odds is quadratic.
  3. The association between the continuous predictor and the continuous response is quadratic.
  4. The association between the binary predictor and the log-odds is quadratic.

Answer(s): B



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