E1 Pr(deny == 1|P/I ratio, black) = 0(-2.26 + 2.74 P/I ratio + 0.71 black)!!(0.16) (0.44)(0.083)Use the estimated probit model above to answer the following questions (standard errors ofthe estimators are in the parenthesis):• a. A black mortgage applicant has a P/I ratio of 0.35. What is the probability that hisapplication will be denied?• b. Suppose that the applicant reduced this ratio to 0.30. What effect would this have onhis probability of being denied a mortgage?• c. Repeat (a) and (b) for a white applicant.• d. Does the marginal effect of the P/I ratio on the probability of mortgage denial dependon race? Explain.

Name: E1 Pr(deny == 1|P/I ratio, black) = 0(-2.26 + 2.74 P/I ratio + 0.71 bl
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: E1 Pr(deny == 1|P/I ratio, black) = 0(-2.26 + 2.74 P/I ratio + 0.71 black)!!(0.16) (0.44)(0.083)Use the estimated probit model above to answer the following questions (standard errors ofthe estimators are in the parenthesis):• a. A black mortgage app