In Estimating the Linear Probability Model for Whether an Individual

question 7

Multiple Choice

In estimating the linear probability model for whether an individual clicked through on an advertisement based off whether the individual is on a mobile device or not, which of the following conditions may not hold from the resulting regression (ClickThrough_i = β₀ + β₁Mobile_i + U_i) ?

• A) The sum of the residuals will be zero.
• B) The sum of the residuals for the mobile observations will be zero.
• C) The sum of the residuals for the non-mobile observations will be zero.
• D) The sum of the predictions will be zero.

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Definitions:

Multi-attribute Utility Analysis

A systematic approach for evaluating and comparing options based on multiple criteria or attributes, used in decision-making processes.

Decision Points

Critical moments or stages in a process where a specific decision needs to be made to determine the subsequent course of action.

Constraints

Limitations or restrictions that affect the process or outcome of a situation, project, or system.

Generating Ideas

The process of coming up with new and creative concepts or solutions, often through brainstorming or other collaborative methods.