Replacing missing data
Rather than deleting the missing interest rates, you may want to replace them instead. The object na_index
, which contains the index of the observations with missing interest rates is still loaded in your workspace.
This exercise is part of the course
Credit Risk Modeling in R
Exercise instructions
- Create an object called
median_ir
, containing the median of the interest rates inloan_data
using the median() function. Don't forget to include the argumentna.rm = TRUE
. - In the new data set
loan_data_replace
, replace all the missing instances in the indices stored in objectna_index
with the median of all the interest rates,median_ir
. - Have a look at the variable
int_rate
in the new data set usingsummary()
to make sure that theNA
s are gone.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Compute the median of int_rate
# Make copy of loan_data
loan_data_replace <- loan_data
# Replace missing interest rates with median
loan_data_replace$int_rate[___] <- ___
# Check if the NAs are gone