Assume that the estimated linear probability model is Z=1.1X1+0.6X2+0.5X3+ U,

匿名用户 最后更新于 2021-06-29 17:47 商科Business

Assume that the estimated linear probability model is Z=1.1X1+0.6X2+0.5X3+ Uwhere X1=0.75 is the debt-equity ratio of the borrower, X2= 0.25 is the volatility of the borrower's income, and X3=0.15 is the profit ratio of the borrower. What is the expected value of the borrower's probability of repayment.

If the debt-equity ratio is 2.5, what is the expected value of the borrower's probability of repayment in the above question?

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