Multiple Choice
Which of the following is a merit of using the probit/logit model over the linear probability model for a limited dependent variable?
A) By construction predictions from the model will fall within 0 and 1.
B) The marginal effects are easier to calculate.
C) The probit/logit model can be estimated using similar OLS.
D) The probit/logit model is better at finding causal estimates.
Correct Answer:
Verified
Correct Answer:
Verified
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