What Is a Probit Model? Why Is It More Appropriate

question 29

Essay

What is a probit model? Why is it more appropriate than OLS? Explain.

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Definitions:

Alternative Evaluation

The process consumers use to assess the benefits and drawbacks of different products or services before making a purchasing decision.

Information Search

The process consumers undergo to gather facts and opinions about various options before making a purchasing decision.

Problem Recognition

The initial stage of the buying process where a consumer identifies a need or problem that can be satisfied by purchasing a product or service.

Cognitive Dissonance

The mental unease felt by a person when they simultaneously possess conflicting beliefs, ideas, or values.