Question
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
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 (x1) paid by the employer and the individual's income(x2) (in $1,000s).
a. Analyze the linear probability regression model for insurance coverage with premium percentage(x1) and income (x2) used as the predictor variables. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
b-1. Consider an individual with an income of $72,000. What is the probability that she has insurance coverage if her employer contributes 50% of the premium? (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)
Note: Report the probability between 0 and 1 (not in %).
b-2. What if her employer contributes 75% of the premium? (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)
Note: Report the probability between 0 and 1 (not in %).
Insurance | PremiumPercentage | Income |
1 | 0 | 95 |
0 | 0 | 61 |
0 | 58 | 58 |
0 | 71 | 45 |
1 | 65 | 35 |
1 | 45 | 68 |
0 | 37 | 74 |
0 | 60 | 48 |
1 | 72 | 41 |
0 | 72 | 40 |
0 | 57 | 51 |
0 | 67 | 42 |
1 | 0 | 95 |
0 | 52 | 58 |
0 | 60 | 70 |
1 | 64 | 83 |
0 | 88 | 35 |
0 | 0 | 64 |
0 | 0 | 56 |
0 | 72 | 83 |
0 | 75 | 65 |
0 | 78 | 27 |
0 | 67 | 35 |
0 | 31 | 56 |
0 | 55 | 67 |
0 | 87 | 35 |
0 | 70 | 59 |
0 | 0 | 67 |
0 | 78 | 38 |
1 | 65 | 66 |
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