Obs	Financial Condition	TotCap/Assets	TotExp/Assets	TotLns&Lses/Assets
1	1	9.7	0.12	0.65
2	1	1	0.11	0.62
3	1	6.9	0.09	1.02
4	1	5.8	0.1	0.67
5	1	4.3	0.11	0.69
6	1	9.1	0.13	0.74
7	1	11.9	0.1	0.79
8	1	8.1	0.13	0.63
9	1	9.3	0.16	0.72
10	1	1.1	0.16	0.57
11	0	11.1	0.08	0.43
12	0	20.5	0.12	0.8
13	0	9.8	0.07	0.69
14	0	7.9	0.08	0.53
15	0	9.6	0.09	0.73
16	0	12.5	0.09	0.3
17	0	18.3	0.08	0.49
18	0	7.2	0.11	0.55
19	0	14	0.08	0.44
20	0	8.3	0.08	0.51

1. Write the estimated equation that associates the financial condition of a bank with its two predictors in the format of the logit as a function of the predictors.

2. Write the estimated equation that associates the financial condition of a bank with its two predictors in the format of the probability as a function of the predictors.

3. Suppose a bank has TotExp/Assets = 0.12 and TotLns&Lses/Assets = 0.48.

i.What is the estimated probability of weak (class 1)?

ii.Use a cutoff value of 0.5, where probabilities above 0.5 are predicted to be weak, would this bank be classified as weak or strong?