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2. Load the loan approval data froam the wooldridge package library (wooldridge) data("loanapp") This data has a number of variables on whether mortgage applications were approved or not. A few key variables (you can find explanations of all the variables by typing ?loanapp into the console): . approve: Was the loan application approved or not'? white: is the applicant white or not? hrat: Housing cost as a percent of income o loanprc: Loan as a percent of total home value (a) Estimate a linear probability model of the following form: approve-Ao + |white + 2hrat + 3loanpre+ E What is the average difference in loan approval rate between white and non- white applicants, holding hrat and loanprc constant? Is this difference statisti cally significant? (b) Estimate the same model above, except as a logistic regression. What is the difference in loan approval rate for non-white and white applicants for whom hrat is 25 and loanpre is .8 (these are approximately the mean values of each variable) (c) What is the difference in loan approval rates for when hrat is 29 and loanprc is .9 (these are approximately the 75th percentile of each variable). 2. Load the loan approval data froam the wooldridge package library (wooldridge) data("loanapp") This data has a number of variables on whether mortgage applications were approved or not. A few key variables (you can find explanations of all the variables by typing ?loanapp into the console): . approve: Was the loan application approved or not'? white: is the applicant white or not? hrat: Housing cost as a percent of income o loanprc: Loan as a percent of total home value (a) Estimate a linear probability model of the following form: approve-Ao + |white + 2hrat + 3loanpre+ E What is the average difference in loan approval rate between white and non- white applicants, holding hrat and loanprc constant? Is this difference statisti cally significant? (b) Estimate the same model above, except as a logistic regression. What is the difference in loan approval rate for non-white and white applicants for whom hrat is 25 and loanpre is .8 (these are approximately the mean values of each variable) (c) What is the difference in loan approval rates for when hrat is 29 and loanprc is .9 (these are approximately the 75th percentile of each variable)

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