When Should a Probit Model Be Used

question 1

Multiple Choice

When should a probit model be used?

• A)when you need a binary choice model that allows for varying marginal effects
• B)when you need to model the heteroskedasticity in the linear probability model
• C)to allow for endogenous regressors in a binary choice model
• D)to allow for multiple explanatory variables in a binary choice model

---

Definitions:

Psychological Essentialism

The belief that certain categories have an underlying reality or true nature that gives objects their identity.

Schemata View

This term refers to the cognitive framework or structure that helps individuals organize and interpret information.

Nonanalytic Concept Formation

This refers to the process of understanding and categorizing information based on experience or intuition, rather than through analytical or systematic strategies.

Grounded Cognition

The theory suggesting that cognitive processes are deeply rooted in the body's interactions with the world, relying on sensory experiences.