Linear Probability Model What is the probabiliny of approval f the income to koan ratio is 20 percent

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

6

Question
Example: Granting Mortgages
9050 + 0.02,
1of
Linear Probability Model
* The explanatory variable exerts a positive statistically
significant influence on loan approval, at 0.1N significance
levet (***)
• 0028 implies that 1% increase in income-to-loan ratio
increases the approval probability by 28
What is the probability of approval if the income to loan ratio is 20%7
percent
Transcribed Image Text:Question Example: Granting Mortgages 9050 + 0.02, 1of Linear Probability Model * The explanatory variable exerts a positive statistically significant influence on loan approval, at 0.1N significance levet (***) • 0028 implies that 1% increase in income-to-loan ratio increases the approval probability by 28 What is the probability of approval if the income to loan ratio is 20%7 percent
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman