b. What is the predicted probability implied by the linear prob... | Filo

7.5K views · 43 reactions | There is some concern this evening for possible severe weather in a linear system. The following is one hi-resolution model's guess at what the radar MAY look like throughout the day. | US National Weather Service Columbia South Carolina | Facebook

Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d