Question: Suppose the estimated logit model is Borrower Borrower A Borrower B - Z = 6.16 5.36X 3.14X + error where X, is cash flow

Suppose the estimated logit model is Borrower Borrower A Borrower B -

Suppose the estimated logit model is Borrower Borrower A Borrower B - Z = 6.16 5.36X 3.14X + error where X, is cash flow to debt ratio and X is current assets to current liability X 0.138 0.370 X 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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