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

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Exercise instructions

Create an object called median_ir, containing the median of the interest rates in loan_data using the median() function. Don't forget to include the argument na.rm = TRUE.
In the new data set loan_data_replace, replace all the missing instances in the indices stored in object na_index with the median of all the interest rates, median_ir.
Have a look at the variable int_rate in the new data set using summary() to make sure that the NAs 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

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