Equation (11.3)in your textbook presents the regression results for the linear probability model.
a. Using a spreadsheet program such as Excel, plot the fitted values for whites and blacks in the same graph, for P/I ratios ranging from 0 to 1 (use 0.05 increments).
b. Explain some of the strengths and shortcomings of the linear probability model using this graph.

Question

Quizplus · Accepted Answer

The Answer of Equation (11.3)in your textbook presents the regression results for the linear probability model.
a. Using a spreadsheet program such as Excel, plot the fitted values for whites and blacks in the same graph, for P/I ratios ranging from 0 to 1 (use 0.05 increments).
b. Explain some of the strengths and shortcomings of the linear probability model using this graph.