Suppose the estimated logit model is Borrower Borrower A Borrower B - Z = 6.16 ...
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Suppose the estimated logit model is Borrower Borrower A Borrower B - Z = 6.16 – 5.36X₁ − 3.14X₂ + error where X, is cash flow to debt ratio and X₂ is current assets to current liability X₁ 0.138 0.370 X₂ 2.612 1.994 Probability of Default What is the probability of default for the respective borrowers? After determining the probability, the lending officer is concerned about the variable, current assets to current liability. Explain why the lending officer should be concerned about this variable. Suppose the estimated logit model is Borrower Borrower A Borrower B - Z = 6.16 – 5.36X₁ − 3.14X₂ + error where X, is cash flow to debt ratio and X₂ is current assets to current liability X₁ 0.138 0.370 X₂ 2.612 1.994 Probability of Default What is the probability of default for the respective borrowers? After determining the probability, the lending officer is concerned about the variable, current assets to current liability. Explain why the lending officer should be concerned about this variable.
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Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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