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Logit regression The logit regression between bankruptcy and the profit margin is as follows. bankruptcy = b0 + b1*profit_margin + e coefficient t-stat b0 0.21
Logit regression
The logit regression between bankruptcy and the profit margin is as follows. bankruptcy = b0 + b1*profit_margin + e coefficient t-stat b0 0.21 1.23 b1 -0.95 -2.41 The "bankruptcy" is a dummy variable with the value one for the bankrupted firm and zero otherwise. "profit_margin is the firm's profit margin. Compute the difference in probability of bankruptcy when the average profit margin increases from 0.10 to 0.40. Show the calculation detail. (5 marks) The logit regression between bankruptcy and the profit margin is as follows. bankruptcy = b0 + b1*profit_margin + e coefficient t-stat b0 0.21 1.23 b1 -0.95 -2.41 The "bankruptcy" is a dummy variable with the value one for the bankrupted firm and zero otherwise. "profit_margin is the firm's profit margin. Compute the difference in probability of bankruptcy when the average profit margin increases from 0.10 to 0.40. Show the calculation detailStep by Step Solution
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