Suppose you are interested in investigating the possibility of racial discrimination in the mortgage loan market. You have data on 1,989 individual mortgage loan applications. For each loan i, your outcome is a binary variable approve, which is equal to 1 if person i was approved and 0 if they were denied the loan. Your explanatory variable is white which is a dummy variable equal to 1 if applicant i is white and 0 otherwise. All other applicants in the sample are either black or Hispanic. Assume that the regressions that follow are estimated in Stata using the robust option. Consider the following linear probability model for explaining loan approval:

\fapprove, = 0.708 + 0.201 *whiteapprove; = Bot Bwhite; + Songotherfactors; + 6;\fapprove, = 0.937 + 0.129 *white, + 8-_;otherfactors;