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Model 1 is a linear probability model (LPM) and Model 2 is a logistic regression model. Both models have smokes (a variable equal to 1fi
Model 1 is a linear probability model (LPM) and Model 2 is a logistic regression model. Both models have smokes (a variable equal to 1fi the individual smokes cigarette otherwise) as the dependent variable. log cigprice is the natural logarithm and 0 price the individual faces, educ is an individual's years of education, log i of cigarette natural logarithm of an individual's income, and age si an ncome is the individual's age. (i) Interpret the coefficients of age ni each model. (9 points) (ii) In each model, calculate the probability of someone who faces a cigarette price of $5, has 21 years of education, has an income of $50,000
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