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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Definitions:

Logarithm

The exponent that a base, typically 10 or e, needs to be elevated to in order to generate a specific number.

Graph

A visual representation of data, functions, or equations, typically plotted with an x and y axis.

Natural Logarithm

The logarithm to the base e, where e is an irrational and transcendental number approximately equal to 2.71828.

Graph

An image that demonstrates the system of interactions or affiliations among two or more entities by employing distinctive visual tools such as dots, lines, and bars.