If the Determining Function for the Likelihood of a Mortgage

question 13

Multiple Choice

If the determining function for the likelihood of a mortgage application receiving a loan is given by, Loan Successful = 0.60 + 0.01 Credit Score. What would be the causal effect of increasing your credit score by 10 points?

• A) Your expected probability of getting a loan would be 0.60 + 0.01(10) = 0.61.
• B) Your expected probability of getting a loan would be 0.60
• C) Your expected probability of getting a loan would increase by 0.01(10) = 0.10
• D) Your expected probability of getting a loan would increase by 10.

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Definitions:

Incomes of U.S. Farmers

The earnings from agricultural activities and subsidies received by individuals and entities engaged in farming in the United States.

Farm Prices

The prices at which agricultural products are sold by farmers, influenced by supply, demand, subsidies, and market conditions.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.