In the linear probability model, the interpretation of the slope coefficient is
A)the change in odds associated with a unit change in X, holding other regressors constant.
B)not all that meaningful since the dependent variable is either 0 or 1.
C)the change in probability that Y=1 associated with a unit change in X, holding others regressors constant.
D)the response in the dependent variable to a percentage change in the regressor.

Question

Quizplus · Accepted Answer

In a linear probability model, the dependent variable is binary and takes on the value of either 0 or 1. Therefore, the slope coefficient measures the change in the probability of Y=1 associated with a unit change in X, while holding constant the other regressors. It is important to note that this interpretation is only valid within the range of values of X used in the analysis.

In the Linear Probability Model, the Interpretation of the Slope