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)%3!(0.16) (0.45)(0.085)A black mortgage applicant has a PA 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)o Suppose that the applicant reduced this ratio to 0.31. What effect would this have on his predicted probability of being denied a mortgage?The predicted probability of being denied a mortgage would decrease by 7.67 percentage points.(Round your response to two decimal places)ckA white mortgage applicant has a P/I ratio of 0.36. What is the predicted probability that his application will be denied?onThe predicted probability that his application wil be denied is%.ory(Express your response as a percentage and round to two decimal places)

Given that, Pr(deny=1|P/I ratio, black)=ϕ(-2.21+2.73P/I ratio+0.75black) where, ϕ is the…

Answered: The equation below estimates the effect…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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