Consider a binary response variable y and two predictor variables x₁ and x2. The following table contains the parameter estimates ofthe linear probability model (LPM) and the logistic regression model, with the associated p-values shown in parentheses.VariableInterceptx1x2(0.07)-0.10(0.02) (0.01)a. At the 5% significance level, comment on the significance of the variables for both models.VariableLPM-0.40(0.06)0.36X₁X₂(0.03)-0.03Logistic-2.30(0.03)0.90LPMLogistic b. What is the predicted probability implied by the linear probability model for x1 = 6 with x2 equal to 17 and 29?Note: Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places. Report the probabilitybetween 0 and 1 (not in %).X₁ = 6, x₂ = 17x₁=6, x₂=29c. What is the predicted probability implied by the logistic model for x₁ = 6 with x2 equal to 17 and 29?Note: Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places. Report the probabilitybetween 0 and 1 (not in %).x₁ = 6, X₂ = 17= 6, x₂ = 299x₁9

Solution: The output for the linear probability model and the logistic regression model is given.

Answered: Consider a binary response variable y…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The following regression is fitted using variables identified that could be related to student requested loan amount, LOAN-AMT($) for returning students of a certain University. LOAN AMT = a + ß ACCEPT + y PREV + λ OUTS Where ACCEPT = the percentage of applicants that was accepted by the university, PREV= previous loan amount and OUTS outstanding loan amount The data was processed using MNITAB and the following is an extract of the output obtained: Predictor Constant ACCEPT PREV OUTS S = 2685 Coef -26780 116.00 -4.21 70.85 R-Sq = 69.6% Analysis of Variance DF 3 Source Regression Residual Error 49 Total 52 SS EXHIBIT 2 St Dev 6115 37.17 14.12 15.77 808139371 353193051 1161332421 a) What is dependent and independent variables? b) Fully write out the regression equation T * 3.14 -0.30 4.49 MS 269379790 7208021 c) What is the sample size used in this investigation? d) Fill in the blanks identified by *** and ****. e) Is ẞ significant, at the 5% level of significance? P 0.000 0.003 ** 0.000…
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