The Error Term in a Binary Regression Using a Logit

question 58

Multiple Choice

The error term in a binary regression using a logit model is assumed to be a

• A) normal distribution
• B) Gumbel distribution
• C) bivariate distribution
• D) Poisson distribution

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Definitions:

Payroll of Scotland Company

The total amount of wages and salaries paid by Scotland Company to its employees.

Total Payroll Tax

The combined amount of all governmental taxes that an employer is required to withhold and/or pay on behalf of their employees, including federal, state, and local taxes.

Social Security Taxes

Taxes levied on both employers and employees to fund the Social Security program, used for providing retirement, disability, and survivor benefits.

Medicare Taxes

Taxes withheld from employees' paychecks and matched by employers to fund the Medicare program.