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0i. The first thing you calculate is the joint distribution of Loan Result (0- not funded and Ifunded) and Education Level (O-less than Bachelors degree, 1-Bachelors degree or higher). Education Level 0 0.282 0.164 Loan result en t 0 0.078 0.476
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Yes, loan result and education level are dependent. In fact, they are positively correlated. The education level is positively correlated with the loan result.

For instance, when the education is not funded (loan result = 0) then the probability of less than Bachelor’s degree (0.282) is higher as compared to the probability of Bachelor’s degree or higher (0.078).

However, when the education is funded (loan result = 1) then the probability of less than Bachelor’s degree declines to 0.164, while the probability of Bachelor’s degree or higher increases to 0.476.

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