The Probit Model Assumes What Sort of Distribution for the Unobservables

question 11

Multiple Choice

The probit model assumes what sort of distribution for the unobservables?

• A) Standard normal distribution
• B) T-distribution
• C) Logistic distribution
• D) The probit distribution

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Definitions:

Actual Costs

The real costs incurred for materials, labor, and overhead in producing goods or delivering services, as opposed to estimated costs.

Standard Costs

Estimated pre-determined costs used for budgeting and measuring performance.

Standard Direct Labor Rate

The predetermined cost per hour for labor directly involved in manufacturing a product or delivering a service.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.