2. A linear probability model (LPM) has been estimated using Ordinary Least Squares (OLS) with a sample of N = 500 observations, yielding the following results:
Y = 12.4 + 3.4X1,i – 0.2X2,i + ûi
(23) (3.2) (-0.9)
Knowing that the values in parentheses correspond to the individual significance statistics (t-ratios) of the estimated parameters, then it can be stated that:
a) The constant and the parameter of variable X1,i are statistically significant at a 5% significance level.
b) All estimated parameters are statistically significant at a 5% significance level.
c) Only the parameter of variable X2,i is statistically significant at a 5% significance level.
d) Based on the available information, it cannot be determined which estimated parameters are statistically significant.