Table 12.8 (on the textbook's Web site) gives data on the dependent variable, the final grade on the intermediate macroeconomics examination (V), such that V = 1 if the final grade is an A and V = 0 if the final grade is a B or C, and explanatory variables GPA = the entering grade-point average, TUCE = the score on an examination given at the beginning of the term to test macroeconomics knowledge of entering students, and PSI = 1 if the new method of personalized system of instructions is used and 0 if otherwise. These data pertain to 32 students. The primary objective of this study was to assess the effectiveness of PSI on the final grade.
a. Estimate a linear probability model for the data given in Table 12-8.
b. Using any computer software package (e.g., MINITAB, EViews, SHAZAM, etc.), estimate a logit model for the same data.
c. Compare and comment on the results obtained in parts (a) and (b).