Suppose that a linear probability model is to be fit to a set of observations on a

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Suppose that a linear probability model is to be fit to a set of observations on a dependent variable y that takes values zero and one, and a single regressor x that varies continuously across observations. Obtain the exact expressions for the least squares slope in the regression in terms of the mean(s) and variance of x, and interpret the result.

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Econometric Analysis

ISBN: 978-0131395381

7th edition

Authors: William H. Greene

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