When Is a Probit Model Preferred to a Logit Model

question 21

Multiple Choice

When is a probit model preferred to a logit model?

• A) Use probit when the independent variables are whole numbers
• B) Use probit when the dependent variable ranges from -1 to 1.
• C) Use probit in all cases since it gives slightly more accurate results than logit.
• D) There is generally no clear reason to pick one over the other as models produce similar results.

Recognize the role of computers in networking and communication.

Understand the benefits and considerations in upgrading computer systems.

Know the basic concepts of data storage and the importance of disaster recovery plans in computing.

Understand key security measures to protect computer systems.

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Definitions:

Advertising Expenditures

The amount of money spent on promoting products or services through various media, aiming to increase awareness and sales.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Cartel

An agreement among competing firms to control prices or production, typically to reduce competition and increase profits illegally or unethically.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.