For the linear probability model y = β₀ + β₁x + ε, the predicted value of y is always constrained to be ________. A) between 0 and 1. B) positive. C) negative. D) between minus infinity to infinity.

Question

Quizplus · Accepted Answer

The linear probability model predicts values that can potentially range from minus infinity to infinity because it is a linear function of the independent variable(s). Linear models do not inherently constrain the dependent variable's predicted values within a specific range, unlike logistic regression models which predict probabilities constrained between 0 and 1.

For the Linear Probability Model Y = β0 + β1x

For the Linear Probability Model Y = β₀ + β₁x