Checking for Correlation of Group Means and Variances

Figure 1. Group statistics
Table of group means and standard deviations

The group statistics table reveals a potentially more serious problem. For all four predictors, larger group means are associated with larger group standard deviations. In particular, look at Debt to income ratio (x100) and Credit card debt in thousands, for which the means and standard deviations for the Yes group are considerably higher. In further analysis, you may want to consider using transformed values of these predictors.

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