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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Using the usual regression statistics we would have For data in ...View the full answer
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