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2 . Binary Dependent Variables ( a ) Consider the linear probability model:attack = - 0 . 0 9 1 + 0 . 5 5

2. Binary Dependent Variables(a) Consider the linear probability model:attack =-0.091+0.559bp +0.177 smokeHere, attack is a binary variable taking value 1 if person gets a heart attack and 0 otherwise. bp is blood pressure level and smoke is a binary variable taking value 1 if person smokes and 0 otherwise.Consider an individual who smokes and has a blood pressure level of 0.275.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 model(c) What is a probit regression model? Define.(d) What is a logit regression model? Define.

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