Question
Insurance Premium Income 1 0 88 0 0 60 1 52 48 1 66 55 1 71 38 1 44 78 1 36 83 0
Insurance | Premium | Income | |
1 | 0 | 88 | |
0 | 0 | 60 | |
1 | 52 | 48 | |
1 | 66 | 55 | |
1 | 71 | 38 | |
1 | 44 | 78 | |
1 | 36 | 83 | |
0 | 50 | 50 | |
1 | 80 | 36 | |
1 | 66 | 44 | |
0 | 50 | 42 | |
0 | 60 | 50 | |
1 | 0 | 90 | |
0 | 50 | 62 | |
1 | 55 | 73 | |
1 | 64 | 80 | |
1 | 80 | 44 | |
1 | 0 | 70 | |
0 | 0 | 50 | |
1 | 80 | 76 | |
1 | 80 | 58 | |
0 | 70 | 36 | |
0 | 60 | 44 | |
1 | 40 | 60 | |
1 | 50 | 62 | |
1 | 80 | 42 | |
1 | 70 | 59 | |
0 | 0 | 64 | |
1 | 80 | 42 | |
0 | 60 | 60 |
a. Analyze the linear probability model for insurance coverage with premium percentage (x1) and income (x2) used as the predictor variables.
Note: 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 $60,000. What is the probability that she has insurance coverage if her employer contributes 50% of the premium?
Note: Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places. Report the probability between 0 and 1 (not in %).
b-2. What if her employer contributes 75% of the premium?
Note: Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places. Report the probability between 0 and 1 (not in %).
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