tarunajwani

Probability (and likelihood which is the same as probability) can take any value between 0 and 1.
But the probabilities are not the qualitative dependent variables in choices A & C. The variables are for choice A)Bankruptcy - whether the company will go bankrupt (Yes or No)
C) Divestiture - whether the coompany will divest (Yes or No)
The probabilities will help explain the chances of bankrupty or divestiture (they will be the coefficients of the independent variables like the financial ratios etc).
Hope that helps.
- VR