Question: Consider a binary response variable y and an explanatory variable x that varies between 0 and 50. The linear probability model is estimated as

Consider a binary response variable y and an explanatory variable x that varies between 0 and 50. The linear probability model is estimated as Ŷ = 0.92 − 0.02x.

a. Compute the estimated probability for x = 25 and x = 40.

b. For what values of x is the estimated probability negative?

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