(Solved): Al labour economist wishes to determine the probability that someone is unenployed based on the ch ...

Al labour economist wishes to determine the probability that someone is unenployed based on the characterustics of the worker and the work's job. The dependent variable $Y=1$ if the if the person is unemployed and 0 if not. Indepepndent variables are characteristics like gender, experience, years of schooling, union status, etc. We estimate this regression with OLS, and the predicted value of $Y$ is the predicted probability that $Y=1$, i.e. a person is unemployed. This is called a linear probabkility model. What are some potential problems of the linear probabilty model? A. None of these answers are true. B. The predicted probability may be less than 0 or greater than 1. C. The predicted probability is always constrained to be between 0 and 1 . D. The predicted increase in the probability is not constant and is diminishing. Reset Selection Mark for Review What's This?