You run a linear probability model on a sample of Americans, regressing an indicator for gun ownership on income (measured in tens of thousands of dollars). You find a coefficient of 0.06 on income, with a standard error of 0.04. You can conclude that:
A.An additional $10,000 of income is associated with a 0.06 percentage point increase in the probability of owning a gun, a relationship that is statistically significant.
B. An additional $10,000 of income is associated with a 0.06 percentage point increase in the probability of owning a gun, a relationship that is statistically insignificant.
C. An additional $10,000 of income is associated with a 6 percentage point increase in the probability of owning a gun, a relationship that is statistically significant.
D. An additional $10,000 of income is associated with a 6 percentage point increase in the probability of owning a gun, a relationship that is statistically insignificant.
Answer: D. An additional $10,000 of income is associated with a 6 percentage point increase in the probability of owning a gun, a relationship that is statistically insignificant.