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Suppose the estimated logit model is Borrower Probability of Default Borrower A 0.14 2.55 Borrower B 0.38 2.75 What is the probability of default for

Suppose the estimated logit model is

Borrower

Probability of Default

Borrower A

0.14

2.55

Borrower B

0.38

2.75

What is the probability of default for the respective borrowers? After determining the probability, the lending officer is concerned about the variable, current assets to current liability. Explain why the lending officer should be concerned about this variable.

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