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    Business Statistics Communicating with Numbers Study Set 2
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    Exam 17: Regression Models With Dummy Variables
  5. Question
    For the Linear Probability Model Y = β<Sub>0</sub> + β<Sub>1</sub>x
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For the Linear Probability Model Y = β0 + β1x

Question 21

Question 21

Multiple Choice

For the linear probability model y = β0 + β1x + ε,the predicted value of y is always constrained between ________.


A) 0 and 1.
B) −1 and 1.
C) Both 0 and 1,and −1 and 1 are correct.
D) None of these choices is correct.

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