Aside from the Sample Being a Random Sample from the Target

question 44

Multiple Choice

Aside from the sample being a random sample from the target population, and the latent variable model determining function is correct, what critical assumption guarantees the consistency of the maximum likelihood probit and logit estimates for the coefficients?

• A) The sample size is large.
• B) The model errors and the treatment variables are independent.
• C) The predictions need to be between zero and one.
• D) The coefficients are jointly statistically significant.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Bad Debt Expense

An expense associated with accounts receivable that is not expected to be collected.

Receivables Portion

The part of a company's assets that represents money owed to the company by customers for goods or services delivered or used but not yet paid for.