To assess the credit rating profile of a country, a researcher uses the model: rating = 0.5growth + 2quality -0.5default, where rating is a numerical value indicating the credit rating of the country (a higher value indicates a higher credit rating), growth refers to the country's annual GDP growth (in %). quality is an index of regulatory quality which measures the ability of the country's government to implement necessary regulations (a higher value indicates stronger quality) and default measures how many times the country has defaulted on its debt obligations in the past. Table 1 provides country-specific economic data for countries A, B, C, D, and E, respectively. Table 1: Country-specific economic data growth (%) Quality 4 3 2 1 Country A BUDE 2 4 1 5 1 Default 1 2 NOON Calculate the credit rating score of each country and comment on your findings in no more than 80 words. (c) A practitioner argues that the model in (b) above is mis-specified because it implies that large swings in country-specific economic data trigger large swings in credit ratings. The practitioner's point is that, in practice, ratings do not change that frequently. How would you modify the model above to account for the practitioner's criticism? Explain your answer in no more than 100 words.