In Estimating the Linear Probability Model for Whether an Individual

question 26

Multiple Choice

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 (ClickThrough_i = β₀ + β₁TimeSpent_i + U_i) ?

• A) The sum of the residuals will be zero.
• B) All the predictions will fall between 0 and 1.
• C) The estimate for β₁ will be negative.
• D) The estimate for β₀ will be positive.

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Definitions:

Somatoform Disorders

Psychological conditions where patients experience physical symptoms that have no identifiable medical cause, often due to psychological factors.

Mood Disorders

A category of mental health issues characterized by a significant change in a person's mood, such as depression or bipolar disorder.

Inhibited Temperament

A disposition marked by a tendency to avoid or withdraw from unfamiliar people, situations, or environments.

Choleric

One of the four traditional temperaments; characterized by quickness to anger and aggressive or domineering tendencies.