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In the Probit Model A) The β ’s \beta \text { 's }

Question 10

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In the probit model Pr(Y=1X1,X2,,Xk) =Φ(β0+β1X1+βxX2++βkXk) \operatorname { Pr } \left( Y = 1 \mid X _ { 1 } , X _ { 2 } , \ldots , X _ { k } \right) = \Phi \left( \beta _ { 0 } + \beta _ { 1 } X _ { 1 } + \beta _ { x } X _ { 2 } + \ldots + \beta _ { k } X _ { k } \right)


A) the β ’s \beta \text { 's } do not have a simple interpretation.
B) the slopes tell you the effect of a unit increase in X on the probability of Y .
C) β0\beta _ { 0 } cannot be negative since probabilities have to lie between 0 and 1 .
D) β0\beta _ { 0 } is the probability of observing Y when all X 's are 0 .

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