ABC Bank based on past default experience estimates a linear… ABC Bank based on past default experience estimates a linear probability model as given below to estimate the values of??or a set of causal variables?.????????????Where:?is the estimate of importance of the?th?ariable andXij?s a set of j causal variables reflecting quantitative information about the?th?orrowerThe following information on??nd??or a set of??ariables and a firm??s given below.XjSet of Causal Variables J?jXj?or the firmX1Debt to Asset Ratio0.1545%X2Liquidity Ratio0.082.15X3Profit Margin0.4012%X4Volatility in earnings1.250.13?The estimated probability of default for the firm is:A.10.6%B.46.2%C.1.0%D.35.4%E.12.5%AccountingBusinessFinancial AccountingSGSM 51166

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