In estimating the linear probability model for whether an individual clicked through on an advertisement based off whether the individual is on a mobile device or not, which of the following conditions may not hold from the resulting regression (ClickThrough_i = β₀ + β₁Mobile_i + U_i)? A) The sum of the residuals will be zero. B) The sum of the residuals for the mobile observations will be zero. C) The sum of the residuals for the non-mobile observations will be zero. D) The sum of the predictions will be zero.

Question

Quizplus · Accepted Answer

The sum of the predictions may not be zero, as the intercept and slope coefficients may result in a non-zero value for the sum of predictions. The other conditions should hold in a regression model.

In Estimating the Linear Probability Model for Whether an Individual