The estimated linear probability model used by a financial institution to predict business loan applicant default probabilities is given by: PD=0.03X1+0.02X20.05X3+error where X1 is the borrower's debt/equity ratio X2 is the volatility of borrower earnings, and X3 is the borrower's profit margin. For prospective borrower A: For prospective borrower BX1=0.80,X2=0.20, and X3=0.15. Calculate the expected probabilities of default (PD) for each prospective borrower and discuss which borrower is the better loan candidate. ( 8 marks) Explain the major weaknesses of the linear probability model. ( 2 marks)