Can lambda be negative? When solving for lambda with negative daily cash flows and very small actual cash and equivalents, and no credit line for a firm, I am getting negative lambda. If it can be negative, how do i determine the probability of illiquidity from it? 1-(negative lambda) is greater than 1?

Problem 18 Day CF 1 Cash Line of Credit 2 3 10,000 4 0 Cash Actual 6 ($30,000) ($5,000) ($4,000) ($20,000) $7,000 1$9,000) $5,000 ($1,000) ($2,500) ($7,000 7 00 6 7 8 29 BD 31 32 a. 33 b. 5,000 9 10 135 d. 36 e 37 Avg. Daily CF (56,650) Std. Dev. 11105.67923 Lambda (A) 0.30165 Prob. (Illia.) 0.69835 New -0.14857 Prob. (Illig.) 1.14857 Lambda is negative, and the probability of liquidity is more than one. This means the firm must definitely be 38 Problem 9 0 Prob. (Liquid) Prob.(illiquid) Sheets Problem 18 Day CF 1 Cash Line of Credit 2 3 10,000 4 0 Cash Actual 6 ($30,000) ($5,000) ($4,000) ($20,000) $7,000 1$9,000) $5,000 ($1,000) ($2,500) ($7,000 7 00 6 7 8 29 BD 31 32 a. 33 b. 5,000 9 10 135 d. 36 e 37 Avg. Daily CF (56,650) Std. Dev. 11105.67923 Lambda (A) 0.30165 Prob. (Illia.) 0.69835 New -0.14857 Prob. (Illig.) 1.14857 Lambda is negative, and the probability of liquidity is more than one. This means the firm must definitely be 38 Problem 9 0 Prob. (Liquid) Prob.(illiquid) Sheets