Estimating an OLS Model on a Binary Dependent Variable Will

question 8

True/False

Estimating an OLS model on a binary dependent variable will never result in predicted values of the dependent variable that are less than 0 or greater than 1.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns and operates the business, personally responsible for all its debts and liabilities.

Legal Structure

The way a business is organized legally, affecting liability, tax requirements, and regulatory obligations. Common forms include sole proprietorship, partnership, corporation, and LLC.

Startups

Newly established businesses, often in the technology sector, focusing on innovative products or services with a scalable business model.

Workplace Environment

The physical and psychological conditions under which employees work, including aspects such as culture, safety, and available resources, that can impact their performance and satisfaction.