Question
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 ____________
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