Question: please help me 2 Suppose a linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms the

please help me please help me 2 Suppose a linear probability model you have developed

2 Suppose a linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms the debt ratio and the profit margin. Based on past bankruptcy experience, the linear probability model is estimated as: 10 PD, -0.27(Debt ratio) - 0.22(Profit margin). points A firm you are thinking of lending to has a debt ratio of 51 percent and a profit margin of 6 percent. Calculate the firm's expected probability of default, or bankruptcy. (Round your answer to 2 decimal places.) ebook Probability of default Print References

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