III. (9pts) You are given the following model: + appr = Be + Biloanprc + Bzatotinc + Bzatotinc? + B.obrat + B3 pubrec +u, in which: approve: =1 if loan is approved, and 0 if not. obrat: other obligations, % of total income pubrec: = 1 if filed for bankruptcy atotinc: Total monthly income loanprc: loan amount /purchase price atotinc? = atotinc* atotinc a. What sign would you expect from each partial slope coefficient in the model above? Justify your answers. (5pts) From the estimation of model above, one can obtain the following: appr = 1.2 - 0.189loanprc +1.7e 'atotinc 4.3e -"latotinc? 0.0054obrat 0.28 pubrec (0.04) (0.038) (2.7e-06) (5.6e "1) (0.00088) (0.0358) R2 = 0.1087 n = 1989 b. Interpret the coefficients of pubrec, and of loanprc. (2pts) How do you explain the signs of atotinc and atotinc? ? (2pt) c. III. (9pts) You are given the following model: + appr = Be + Biloanprc + Bzatotinc + Bzatotinc? + B.obrat + B3 pubrec +u, in which: approve: =1 if loan is approved, and 0 if not. obrat: other obligations, % of total income pubrec: = 1 if filed for bankruptcy atotinc: Total monthly income loanprc: loan amount /purchase price atotinc? = atotinc* atotinc a. What sign would you expect from each partial slope coefficient in the model above? Justify your answers. (5pts) From the estimation of model above, one can obtain the following: appr = 1.2 - 0.189loanprc +1.7e 'atotinc 4.3e -"latotinc? 0.0054obrat 0.28 pubrec (0.04) (0.038) (2.7e-06) (5.6e "1) (0.00088) (0.0358) R2 = 0.1087 n = 1989 b. Interpret the coefficients of pubrec, and of loanprc. (2pts) How do you explain the signs of atotinc and atotinc? ? (2pt) c