Which interpretation of a linear probability regression model represents the estimate ^P = -40 + 0.05x?
A) for each 1 unit increase in x, the predicted probability ^P decreases by 0.05.
B) for each 40 unit decrease in x, the predicted probability ^P increases by 40.
C) for each 1 unit increase in x, the predicted probability ^P increases by 0.05.
D) for each 0.05 unit increase in x, the predicted probability ^P decreases by 40.

Question

Quizplus · Accepted Answer

The coefficient of x (0.05) indicates the change in the predicted probability (^P) for a one-unit increase in x. Therefore, for each 1 unit increase in x, ^P increases by 0.05.

Which Interpretation of a Linear Probability Regression Model Represents the Estimate