Equation (11

question 24

Essay

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.

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