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Consider a binary response variable y and an explanatory variable x. The following table contains the...

Consider a binary response variable y and an explanatory variable x. The following table contains the parameter estimates of the linear probability model (LPM) and the logit model, with the associated p-values shown in parentheses.

Variable LPM Logit
Constant −0.69 −6.30
(0.06 ) (0.06 )
x 0.06 0.21
(0.04 ) (0.06 )


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



b. What is the predicted probability implied by the linear probability model for x = 20 and x = 36? (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)



c. What is the predicted probability implied by the logit model for x = 20 and x = 36? (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)

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