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Hi guys and thanks for your help. I'm a newbie to EViews so my question may be extremely simple.

I want to model the probability that a firm exports as a function of a set of regressors:
SIZE (Firm size, in thousand employees)
RD INT (Ratio R&D Expenditures over turnover, in percentage)
NORD (a dummy equal to 1 if the firm is located in the North of Italy and 0 otherwise)
By using a sample of 2'172 Italian firms I estimate a Linear Probability and a Probit model whose results are shown in the following tables.



(I just put the LS table since my problem is here)

The professor now ask me to compute this:

Based on the results, compute the probability that a firm exports when it is located in North, it has 5'000 employees and has an RD INT equal to 6%.

My problem is that my probability is higher than 1 and I don't understand why. Am I doing something wrong or the table is wrong? Can you help me with the computation?

Y = 0,21 + (0,018 * 0,06) + (0,059 * 5) + 0,589 = 1,09 !!

I have also troubles understanding the meaning of the coefficients. Since SIZE is in thousand of workers, if I increase by 1000 workers my EXPORT is going to increase by 0,059. (Right?)
RD_INT is a percentage so if I increase by 1% my ratio my EXPORT is going to increase by 0,01% or 1%?

Thanks a lot!!!

You've found the problem with a linear probability model, nothing requires the probability to be between zero and one. Using probit fixes the problem.

Thank you so much! I understand now.

What about the comments on the coefficients? Are they right even if they are not really meaningful?

You have the interpretation of the size coefficient right. The other one depends on whether an increase of one percent is coded as 1.0 or as 0.01.

Thanks a lot really! :D