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Which Interpretation of a Linear Probability Regression Model Represents the Estimate

Question 7

Multiple Choice

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.

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