A significant proportion of Americans do not have health insurance, especially those on the lower end of the economic spectrum. The accompanying data file includes information on insurance coverage (1 for coverage, 0 for no coverage) for 30 working individuals. Also included are the percentage of the premium paid by the employer and the individuals income (in $1,000s).

Click here for the Excel Data File

a. Analyze the linear probability model for insurance coverage with premium percentage (x₁) and income (x₂) used as the predictor variables.

Note: Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.

y=

+

x1+

x2

b-1. 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?

Note: Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places. Report the probability between 0 and 1 (not in %).

b-2. What if her employer contributes 75% of the premium?

Note: Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places. Report the probability between 0 and 1 (not in %).

Insurance	Premium	Income
1	0	88
0	0	60
1	52	48
1	66	55
1	71	38
1	44	78
1	36	83
0	50	50
1	80	36
1	66	44
0	50	42
0	60	50
1	0	90
0	50	62
1	55	73
1	64	80
1	80	44
1	0	70
0	0	50
1	80	76
1	80	58
0	70	36
0	60	44
1	40	60
1	50	62
1	80	42
1	70	59
0	0	64
1	80	42
0	60	60