Question: Consider a binary response variable y and a predictor variable x . The following table contains the parameter estimates of the linear probability model (LPM)
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.
| Variable | LPM | Logistic |
|---|---|---|
| Intercept | 0.72 | 6.20 |
| (0.04) | (0.04) | |
x | 0.05 | 0.26 |
| (0.06) | (0.02) |
Test for the significance of the intercept and the slope coefficients at the 5% level in both models.
Coefficient LPM Logistic
Intercept __________ _________
Slope __________ _________
What is the predicted probability implied by the linear probability model for x = 20 and x = 30?
Note: Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places. Report the probability between 0 and 1 (not in %).
y
x=20 _________
x=30 _________
What is the predicted probability implied by the logistic regression model for x = 20 and x = 30?
Note: Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places. Report the probability between 0 and 1 (not in %).
y
x=20 _________
x=30 _________
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