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Business, 07.11.2019 07:31 romyknight

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:

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