How does the interpretation of the coefficient on the income to debt ratio change in the linear probability model of whether a mortgage applicant was approved for a loan or not if the outcome variable was Deniedi instead of Approvedi?

A. One coefficient will be the change in probability of being denied, while the other will be the change in probability of being approved.
B. One will be a model of causality, the other will be purely about correlation.
C. The coefficients will be the same, but the standard errors will change.
D. It won't change.


Answer: A

Biology & Microbiology

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