The population logit model of the binary dependent variable Y with multiple regressors is Pr (Y=1|X₁ X2 Xk) = F (Bo + B₁X₁ + B₂X₂ + ... + BxXx) = ***** 1+e 1 (PO+B₁X₁ + B₂X₂+...+/ +PxXx) Where X₁, X₂, X are regressors. 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) = F(-2.25 +2.78P/I ratio +0.75black) (0.19) (0.46) (0.087) A black mortgage applicant has a P/I ratio of 0.45. 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)

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The population logit model of the binary dependent variable Y with multiple regressors is
Pr (Y=1|X₁ X2 Xk) = F (Bo + B₁X₁ + B₂X₂ + ... + BxXx) =
*****
1+0 (PO+B₁X₁ + B₂X₂+...+BxXx)
Where X₁, X₂, X are regressors.
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) = F(-2.25 +2.78P/I ratio +0.75black)
(0.19) (0.46)
(0.087)
A black mortgage applicant has a P/I ratio of 0.45. 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)
Transcribed Image Text:The population logit model of the binary dependent variable Y with multiple regressors is Pr (Y=1|X₁ X2 Xk) = F (Bo + B₁X₁ + B₂X₂ + ... + BxXx) = ***** 1+0 (PO+B₁X₁ + B₂X₂+...+BxXx) Where X₁, X₂, X are regressors. 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) = F(-2.25 +2.78P/I ratio +0.75black) (0.19) (0.46) (0.087) A black mortgage applicant has a P/I ratio of 0.45. 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)
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