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

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

a. Com pute the estim ated p robability fo r x = 25 a n d x = 40.

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

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