Question

A GRETL data set was used to estimate the following models to predict the probability of getting accepted into UCSD medical school.

The following SRF's were estimated :

LPM: Accept = -0.40 + 0.35(GPA) + -0.10(Female)

Logit: Accept = -4.00 + 1.50(GPA) + -0.40(Female),

where Accept = 1 if accepted , GPA (0-4) and Female = 1 for female.

3. Which model has the higher impact on probability for a unit change in GPA? LPM or Logit?   

Answer 1

A GRETL data set was used to estimate the following models to predict the probability of getting accepted into UCSD Medical school.

The following SRF's were estimated.

LPM:

Logit:

Now, the slope with GPA in LPM is 0.35, and that with GPA in Logit is 1.50.

So, for a unit change in GPA, in LPM, probability changes by 0.35, whereas in Logit, it changes by 1.50.

So, Logit model has the higher impact on probability for a unit change in GPA.