Consider a binary response variable y and a predictor variable x. The following table contains the parameter estimates of the linear probability model (LPM) and the logistic regression model, with the associated p-values shown in parentheses. 

a. Test for the significance of the intercept and the slope coefficients at the 5% level in both models.

b. What is the predicted probability implied by the linear probability model for x = 20 and x = 30? 

c. What is the predicted probability implied by the logistic regression model for x = 20 and x = 30?

Transcribed Image Text:

Variable Intercept X LPM -0.72 (0.04) 0.05 (0.06) Logistic -6.20 (0.04) 0.26 (0.02)