1.An FI manager has calculated the following values and weights to assess the credit risk and likelihood of having to reschedule a loan. From the Zscore calculated from these weights and values, is the manager likely to approve the loan? Validation tests of the Z-score model indicated that scores below 0.500 were likely to be non-reschedulers, while scores above 0.700 indicated a likelihood of rescheduling. Scores between 0.500 and 0.700 do not predict well. LO 12.3 , 12.4

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Variable Country value Weight DSR 1.25 0.05 IR 1.60 0.10 INVR VAREX MG 0.60 0.35 0.15 0.35 0.02 0.15