Data set link is on the comment section , please refer to the gretl data set

1.Binary dependentvariable:

a)Estimate a linear probability model where the outcome of interest is whether a state has an above average smoking rate and the predictor is cigarette taxes. Interpret the estimated slopecoefficient.

b)Provide a scatterplot the includes the estimated regressionequation.

c)In general, what is the main problem associated with the linear probability model? Is thatproblem encountered for the model youestimated?

d)Estimate a logit model using the same variables you used for the linear probability model. Calculate and interpret the change in the odds of a state having an above average smokingrate from an increase in cigarettes taxes from $1 to$2.

e)Interpret the marginal effect at the mean value of cigarettetaxes.

f)Interpret the results from the classification table provided in the output from the logit regression. Does the model seem to do a good job predicting when a state has an above average smokingrate?

g)Why is the logit model typically preferred over the linear probabilitymodel?