3. (2 points) Suppose we have loan data, which includes the borrowed amount (in 000s of dollars, denoted by X1), borrower's annual income (in 000s of dollars, denoted by X2), whether or not the borrower is a student (X3, which is 1 if the borrower is a student and 0 otherwise), and whether or not the borrower defaulted (Y, which is 1 if the borrower defaulted and 0 otherwise). We want to predict the probability that a borrower will default. After running the logistic regression, we obtain the coefficients: 0 = 1, 1 = 0.05, 2 = 0.01, 3 = 0.5. (a) Suppose that Michael, who is a student, borrowed $5000 (X1 = 5) and has an annual income of $25,000 (X2 = 25). The probability that he will default is about i. 1.0 ii. 0.5 iii. 0.4 iv. 0 (b) The odds that Michael will default is approximately i. 0.2 ii. 0.4 iii. 0.5 iv. 0.6