The equation below estimates the effect of race on the probability of mortgage denial, holding constant the payment-to-income ratio. Pr(deny = 1|P/I ratio, black) - 0(-2.21 +2.73P/I ratio + 0.75black) (0.16) (0.45) (0.085) A black mortgage applicant has a PM ratio of 0.39. What is the predicted probability that his application will be denied? The predicted probability that his application will be denied is 34.64 %. (Express your response as a percentage and round to two decimal places) Suppose that the applicant reduced this ratio to 0.31. What offect would this have on his predicted probability of being denied a mortgag The predicted probability of being denied a mortgage would decrease by 7.67 percentage points. (Round your response to two decimal places) A white mortgage applicant has a PA ratio of 0.36. What is the predicted probability that his application will be denied? The predicted probability that his application will be denied is %. (Express your response as a percentage and round to two decimal places)
The equation below estimates the effect of race on the probability of mortgage denial, holding constant the payment-to-income ratio. Pr(deny = 1|P/I ratio, black) - 0(-2.21 +2.73P/I ratio + 0.75black) (0.16) (0.45) (0.085) A black mortgage applicant has a PM ratio of 0.39. What is the predicted probability that his application will be denied? The predicted probability that his application will be denied is 34.64 %. (Express your response as a percentage and round to two decimal places) Suppose that the applicant reduced this ratio to 0.31. What offect would this have on his predicted probability of being denied a mortgag The predicted probability of being denied a mortgage would decrease by 7.67 percentage points. (Round your response to two decimal places) A white mortgage applicant has a PA ratio of 0.36. What is the predicted probability that his application will be denied? The predicted probability that his application will be denied is %. (Express your response as a percentage and round to two decimal places)
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.4: Expected Value
Problem 20E
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