Question 6

Compute the accuracy when the prediction model lpm we estimated in step 1 above is applied to the training set instead of the test set. Use a probability threshold of 0.5 to compute the accuracy.

## Predicted ## Actual 0 Total ## 0 410 410 ## 1 90 90 ## Total 500 500

## [1] 0.82

Prediction Method	Accuracy
Linear Probability Model (Test Set)	0.79
Linear Probability Model (Training Set)	0.82

Which measure of accuracy is larger, the value based on the training observations or the value based on the test observations? Is this typical? If so, why?