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Which of the Following Correctly Summarizes One of the Differences

Question 4

Multiple Choice

Which of the following correctly summarizes one of the differences in calculating marginal effects of probit/logit models relative to linear probability models?


A) Probit/logit models' marginal effects are causal; linear probability models are not.
B) Probit/logit models' marginal effects will not be constant for all values of X, while (strictly) linear probability models' marginal effects will be constant.
C) Probit/logit marginal effects cannot be positive since predictions need to be between zero and 1, while linear probability models can be positive.
D) Probit/logit marginal effects are stable, while linear probability models tend to be noisier.

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