The Major Advantage of a Logit Model Over a Linear

question 22

Multiple Choice

The major advantage of a logit model over a linear probability model is that the predicted values of y are always between ________.

• A) −1 and 1
• B) 0 and 2
• C) 0 and 1
• D) −1 and 0

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Definitions:

Quotas and Tariffs

Quotas and tariffs are trade policies where quotas limit the quantity of goods that can be imported, and tariffs are taxes imposed on imported goods to make them more expensive.

Foreign Governments

The governing bodies or authoritative administrations of countries other than one's own.

Import Quota

is a limit on the quantity or value of a certain good that can be imported into a country, typically applied to protect domestic industries.

Trade Restrictions

Measures such as tariffs, quotas, and embargoes imposed by governments to control and limit the volume or value of goods and services that are traded across borders.