Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a binary response variable y and a predictor variable x . The following table contains the parameter estimates of the linear probability model (LPM)

Consider a binary response variable y and a predictor variable x. The following table contains the parameter estimates of the linear probability model (LPM) and the logistic regression model, with the associated p-values shown in parentheses.

Variable LPM Logistic
Intercept 0.67 6.90
(0.02) (0.06)

x

0.07 0.19
(0.03) (0.06)

Test for the significance of the intercept and the slope coefficients at the 5% level in both models.

Coefficients LPM Logistic

Intercept _________ __________

Slope __________ __________

What is the predicted probability implied by the linear probability model for x = 20 and x = 35?

Note; Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places. Report the probability between 0 and 1 (not in %).

y

x = 20 __________

x = 35 ___________

What is the predicted probability implied by the logistic regression model for x = 20 and x = 35?

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

y

x = 20 ____________

x = 35 ____________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Techniques in Business and Economics

Authors: Douglas A. Lind, William G Marchal

17th edition

1259666360, 978-1259666360

More Books