The Following Problems Could Be Analyzed Using Probit and Logit

question 26

Multiple Choice

The following problems could be analyzed using probit and logit estimation with the exception of whether or not

• A)a college student decides to study abroad for one semester.
• B)being a female has an effect on earnings.
• C)a college student will attend a certain college after being accepted.
• D)applicants will default on a loan.

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Definitions:

Automobile Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Payment

The transfer of money or goods in exchange for a product or service.

Straight Life Insurance

Insurance that requires the payment of premiums throughout the life of the insured and pays the beneficiary the face value of the policy upon the insured’s death.