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In Estimating the Linear Probability Model for Whether an Individual

question 26

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In estimating the linear probability model for whether an individual clicked through on an advertisement based off how much time the individual spent on the website, which of the following conditions must hold from the resulting regression (ClickThroughi = β0 + β1TimeSpenti + Ui) ?


Definitions:

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the nervous system and skin.

Coelom

A fluid-filled body cavity found in most multicellular animals, located between the intestinal canal and the body wall, and surrounded by mesoderm tissue.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, giving rise to the lining of the gut and the associated structures.

Mesoderm

The middle layer of an embryo in early development, which will develop into muscles, bones, and circulatory systems.

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