The major flaw of the linear probability model is that A)the actuals can only be 0 and 1, but the predicted are almost always different from that. B)the regression R² cannot be used as a measure of fit. C)people do not always make clear-cut decisions. D)the predicted values can lie above 1 and below 0.

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The major flaw of the linear probability model is that the predicted values can lie above 1 and below 0, which is not possible as probabilities range from 0 to 1. This violates the assumptions of the model and renders the predictions meaningless.

The Major Flaw of the Linear Probability Model Is That