APPLICATION OF LINEAR PROBABILITY MODEL IN THE STUDY OF HOME OWNERSHIP AND FAMILY INCOME FOR SOME SELECTED FAMILIES IN AFIKPO NORTH L.G.A

Abstract

This paper employs linear probability model in the analysis of home ownership and family income for some selected Ebonyi state workers in Afikpo North LGA. The work aimed at demonstrating the application of linear probability model to the analysis of qualitative response regression model with the regressand or dependent variable having binary or dichotomous variable, to determine the probability of none home owners to own a house, And to ascertain the mean income of Ebonyi worker in Afikpo North to owning a house. Primary data of sample of 100 respondents were obtained using purposive method of a non-probability sampling technique. Out of the 100 non home owners sampled, the result showed that the mean increase rate of income of a family in Afikpo North to owning a house is 12%, which is far from 100%. The estimated value from Linear Probability Model (LPM) applied in this work indicates that the probability of non-home owners to own a house in Afikpo North Local Government Area is 0.12 which is very insignificant and defiles the possibility owning a house. We therefore recommend that the government of Ebonyi State should look into the staff welfare and increase their salaries to enable them own a house of their own.