A linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior

Question:

A linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the debt-to-equity ratio and the sales-to-total assets ratio. Based on past bankruptcy experience, the linear probability model is estimated as:
PDi = 0.5 (Debt/Equity) – 0.01 (Sales/Total assets)