Consider a binary response variable y and two predictor variables x1 and x2. The following table contains the parameter estimates of the linear probability model (LPM) and the logistic regression model, with the associated p-values shown in parentheses. Variable LPM Logistic Intercept −0.50 −1.90 (0.02) (0.06) x1 0.26 0.99 (0.06) (0.06) x2 −0.06 −0.30 (0.01) (0.04)   What is the predicted probability implied by the linear probability model for x1 = 8 with x2 equal to 10 and 25?                                       y x1 = 8, x2 = 10       _______ x1 = 8, 2 = 25         _______

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Consider a binary response variable y and two predictor variables x1 and x2. The following table contains the parameter estimates of the linear probability model (LPM) and the logistic regression model, with the associated p-values shown in parentheses.

Variable LPM Logistic
Intercept −0.50 −1.90
(0.02) (0.06)
x1 0.26 0.99
(0.06) (0.06)
x2 −0.06 −0.30
(0.01) (0.04)

 

What is the predicted probability implied by the linear probability model for x1 = 8 with x2 equal to 10 and 25?

 

                                    y

x1 = 8, x2 = 10       _______

x1 = 8, 2 = 25         _______

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