In the Probit Model Pr(Y = 1 | X₁, X₂

question 4

Multiple Choice

In the probit model Pr(Y = 1 | X₁, X₂,..., X_k) = ?(?₀ + ?₁X₁ + ?_xX₂ + ... + ?_kX_k) ,

• A)the ?'s do not have a simple interpretation.
• B)the slopes tell you the effect of a unit increase in X on the probability of Y.
• C)?₀ cannot be negative since probabilities have to lie between 0 and 1.
• D)?₀ is the probability of observing Y when all X's are 0

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Definitions:

Probability of Success

The likelihood of achieving a desired outcome or event.

Binomial Distribution

A probability distribution that represents the number of successes in a set number of independent binary (success/failure) experiments.

Consecutive Trials

Successive attempts or tests carried out to achieve a particular result, where each trial follows the previous one without interruption.

Possible Outcomes

Refers to all the potential results that could occur from a specified event or experiment.