Consider a binary response variable y and an explanatory 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.

Variable LPM Logistic Constant −0.72

(0.04)

−6.20

(0.04)

x 0.05

(0.06)

0.26

(0.02)

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?