Which of the Following Is an Appropriate Way to Interpret

question 4

Multiple Choice

Which of the following is an appropriate way to interpret a coefficient on a continuous independent variable (X1) from a LPM model?

• A) Calculate the difference in fitted values when the variable is at its actual value and increased by a standard deviation, holding all other variables at their actual values.
• B) Standardize each observation by dividing each observation by the standard deviation.
• C) The coefficient indicates how much a one unit increase in X1 changes the predicted probability.
• D) Use a latent variable.

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