Multiple Choice
Which of the following limitations of the linear probability is not problematic in the event that the only treatment variable in your regression (X or right-hand side) , is a binary variable?
A) The errors of the model have to be heteroscedastic.
B) The errors of the model have to be homoscedastic.
C) The predictions might not fall between zero and 1.
D) The coefficients might be negative.
Correct Answer:
Verified
Correct Answer:
Verified
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