A Shortcoming of Potentially Using the Probit/logit Model When Attempting

question 10

Multiple Choice

A shortcoming of potentially using the probit/logit model when attempting to identify causal effects can include:

• A) software to estimate the probit/logit model is not widely available.
• B) the use of instrumental variables with probit/logit is difficult.
• C) probit/logit models have a difficult time incorporating binary control variables.
• D) hypothesis testing is all but impossible in probit/logit models.

Understand consumer protection laws related to lending and credit reporting.

Calculate total payments and interest on loans and installment plans.

Understand the concept of FICO scores and their impact on creditworthiness.

Calculate the total cost of borrowing under different scenarios including payday loans and layaway plans.

---

Definitions:

Gulf of California

A body of water that separates the Baja California Peninsula from mainland Mexico, known for its deep waters and marine biodiversity.

Sea of Japan

A marginal sea between Japan, Russia, and Korea, connected to the Pacific Ocean, notable for its depth and aquatic biodiversity.

Atoll

A ring-shaped coral reef, island, or series of islets surrounding a lagoon, often found in tropical ocean waters.

Meteoroid

Solid object in interplanetary space; distinguished from asteroids by a smaller size.