Using regression analysis method to analyze a bank's historical loan losses, we get X_C =0.002+0.8X_L,

X_H = 0.003 + 1.8 X_L Where X_C represents the loss rate in the commercial sector, X_Lrepresents the loss rate in the total loan portfolio, and X represents the loss rate in the consumer sector.

(1). If the total loan loss rate of the bank increases by 10%, how much will the expected loss rate of the commercial sector increase? How will the expected rate of loss in the consumer sector change?

(2). Which segment of the market should banks restrict lending to? Why is that?