Question: Consider the binary response variable y and predictor variable x. The following table contains the parameters of the linear probability model(LPM) and the logistic regression

Consider the binary response variable y and predictor variable x. The following table contains the parameters of the linear probability model(LPM) and the logistic regression model, with the corresponding P-value shows in the parenthesis.

Variable LPM Logistic
Intercept

-0.72

(0.04)

-6.20

(0.04)
X

0.05

(0.06)

0.26

(0.02)

1. Test for the significance of the intercept and the slope coefficient at the 5% level in both models.

2. What is the predicted probability implied by the linear probability model for x=20 and x=30?

3. What is the predicted probability implied by the logistic model for x=20 and x=30?

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