Consider a binary response variable y and two predictor variables x₁ and x₂. 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	0.50	1.90
(0.02)	(0.06)
x1	0.26	0.99
(0.06)	(0.06)
x2	0.06	0.30
(0.01)	(0.04)

At the 5% significance level, comment on the significance of the variables for both models.

Variable LPM Logistic

x1 ______ ______

x2 ______ ______

What is the predicted probability implied by the linear probability model for x₁ = 8 with x₂ equal to 10 and 25?

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

x1 = 8, x2 = 10 _________

x1 = 8, x2 = 25 _________

What is the predicted probability implied by the logistic model for x₁ = 8 with x₂ equal to 10 and 25?

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

x1 = 8, x2 = 10 _________

x1 = 8, x2 = 25 _________