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 Intercept Logistic -1.50 (0.04) 0.85 (0.06) -0.10 (0.04) a. At the 5% significance level, comment on the significance of the variables for both Models. x1 x2 Variable LPM -0.20 (0.01) 0.34 X1 X2 (0.06) -0.05 (0.04) LPM Logistic

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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
Intercept
x1
x2
Variable
LPM
-0.20
(0.01)
0.34
X₁
X2
(0.06)
-0.05
(0.04)
a. At the 5% significance level, comment on the significance of the variables for both models.
Logistic
-1.50
(0.04)
0.85
(0.06)
-0.10
(0.04)
LPM
Logistic
Transcribed Image Text: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 Intercept x1 x2 Variable LPM -0.20 (0.01) 0.34 X₁ X2 (0.06) -0.05 (0.04) a. At the 5% significance level, comment on the significance of the variables for both models. Logistic -1.50 (0.04) 0.85 (0.06) -0.10 (0.04) LPM Logistic
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