In the Probit Model A) The $\beta \text { 's }$

question 10

Multiple Choice

In the probit model $\operatorname { Pr } \left( Y = 1 \mid X _ { 1 } , X _ { 2 } , \ldots , X _ { k } \right) = \Phi \left( \beta _ { 0 } + \beta _ { 1 } X _ { 1 } + \beta _ { x } X _ { 2 } + \ldots + \beta _ { k } X _ { k } \right)$

• A) the \(\beta \text { 's }\) do not have a simple interpretation.
• B) the slopes tell you the effect of a unit increase in X on the probability of Y .
• C) \(\beta _ { 0 }\) cannot be negative since probabilities have to lie between 0 and 1 .
• D) \(\beta _ { 0 }\) is the probability of observing Y when all X 's are 0 .

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Definitions:

Food And Supplies

Items necessary for operating a business, such as a restaurant or hotel, including both edible products and necessary materials.

Spending Variance

The difference between the actual amount spent and the budgeted or expected amount in a given period, often related to costs or expenditures.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, indicating how much more or less was spent on materials than anticipated.

Total Expenses

The sum of all costs and expenses associated with operating a business, including both fixed and variable costs.