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When Having a Choice of Which Estimator to Use with a Binary

Question 20

Multiple Choice

When having a choice of which estimator to use with a binary dependent variable, use


A) probit or logit depending on which method is easiest to use in the software package at hand.
B) probit for extreme values of X and the linear probability model for values in between.
C) OLS (linear probability model) since it is easier to interpret.
D) the estimation method which results in estimates closest to your prior expectations.

Correct Answer:

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