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:

Real GDP

Real GDP, or Real Gross Domestic Product, measures the value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Psychic Cost

The mental and emotional energy or stress involved in making a decision or taking an action, not typically measured in financial terms.

Economic Well-being

A broad concept reflecting individuals' and communities' quality of life, including financial stability, employment, health, and education.

Underground Economy

Economic activities that are not reported to the government and therefore not taxed or included in official GDP calculations.