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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