E(Y | X₁

question 18

Multiple Choice

E(Y | X₁, ..., X_k) = Pr(Y = 1 | X₁,..., X_k) means that

• A)for a binary variable model, the predicted value from the population regression is the probability that Y=1, given X.
• B)dividing Y by the X's is the same as the probability of Y being the inverse of the sum of the X's.
• C)the exponential of Y is the same as the probability of Y happening.
• D)you are pretty certain that Y takes on a value of 1 given the X's.

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Definitions:

Avalanche

In finance, an avalanche method refers to a strategy of paying off debts by starting with the highest interest rate debt first.

Security Interest

A legal claim or lien on collateral that has been pledged, typically to obtain a loan, ensuring the right to take possession if repayment is not made.

Assigns

In legal terms, refers to the transfer of a property right or title to another person.

Subordinated

A classification of debt that ranks below other debts with regard to claims on assets or earnings.