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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