Both OLS and Probit Models Require That the Error Term

question 14

True/False

Both OLS and probit models require that the error term be normally distributed.

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Definitions:

Foot-In-The-Door Effect

A psychological principle that suggests agreeing to a small request increases the likelihood of agreeing to a larger request later.

Compliance

The act of conforming to or following rules, standards, or laws, or yielding to a request or command from an authority.

Low-Ball Technique

A strategy in which someone makes a very attractive initial offer to get a person to commit to an action and then makes the terms less favorable.

Norm of Reciprocity

A social expectation that people will respond to each other in kind—returning benefits for benefits provided and responding to actions with similar actions.