Question
Consider the binary response variable y and predictor variable x. The following table contains the parameters of the linear probability model(LPM) and the logistic regression
Consider the binary response variable y and predictor variable x. The following table contains the parameters of the linear probability model(LPM) and the logistic regression model, with the corresponding P-value shows in the parenthesis.
Variable | LPM | Logistic |
Intercept | -0.72 (0.04) | -6.20 (0.04) |
X | 0.05 (0.06) | 0.26 (0.02) |
1. Test for the significance of the intercept and the slope coefficient at the 5% level in both models.
2. What is the predicted probability implied by the linear probability model for x=20 and x=30?
3. What is the predicted probability implied by the logistic model for x=20 and x=30?
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