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2 . Binary Dependent Variables ( a ) Consider the linear probability model:attack = - 0 . 0 9 1 + 0 . 5 5
Binary Dependent Variablesa Consider the linear probability model:attack bp smokeHere, attack is a binary variable taking value if person gets a heart attack and otherwise. bp is blood pressure level and smoke is a binary variable taking value if person smokes and otherwise.Consider an individual who smokes and has a blood pressure level of What inference can you draw about this person's chance of getting a heart attack? Consider another individual with same blood pressure but doesn't smoke. What is the difference in chances of getting a heart attack between these two individuals?b List the advantages and disadvantages of a linear probability modelc What is a probit regression model? Define.d What is a logit regression model? Define.
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