According to the 2017 census, just over 90% of Americans have health insurance (CNBC, May 22, 2018). However, a higher percentage of Americans on the lower end of the economic spectrum are still without coverage. Consider a portion of data in the following table relating to insurance coverage (1 for coverage, 0 for no coverage) for 30 working individuals in Atlanta, Georgia. Also included in the table is the percentage of the premium paid by the employer and the individual’s income (in $1,000s).

a. Analyze the linear probability model for insurance coverage with premium percentage and income used as the predictor variables. 

b. Consider an individual with an income of $60,000. What is the probability that she has insurance coverage if her employer contributes 50% of the premium? What if her employer contributes 75% of the premium?

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Insurance 1 0 ⠀ 0 Premium Percentage 0 0 ⠀ 60 Income 88 60 ⠀ 60