A Potential Shortcoming of the Probit/logit Models Is That to Get

question 46

Multiple Choice

A potential shortcoming of the probit/logit models is that to get consistent estimates of the parameters:

• A) the unobservables must be distributed via the standard normal (for probit) and logistically (for the logit).
• B) coefficient estimates cannot be evaluated against alternative hypotheses.
• C) the determining function must be linear.
• D) moment conditions are required for each parameter to be estimated.

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Definitions:

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Kinsey's Study

A pioneering series of studies on human sexual behavior conducted by Alfred Kinsey and his team, which challenged conventional beliefs about sexuality.

Sexual Arousal

The physiological and psychological state of being awakened to sexual desire and readiness for sexual activity.