Consider the following customer: Age=40, Experience=10, Income=84, Family=2, CCAvg=2, Education2=1, Education3=0, Mortgage=O, Securities Account=O, CD Account=O, Online=1 and Credit. card = 1. Perform a k-NN classification with all predictors except ID and ZIP code using k = 1. Remember to transform categorical predictors with more than two categories into dummy variables first. Specify the success class as 1 (loan acceptance), and use the default cutoff value of 0.5. How would this customer be classified?
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