The Major Shortcoming of the General Linear Probability Model Y

question 83

Multiple Choice

The major shortcoming of the general linear probability model y = β₀ + β₁x₁ + β₂x₂ + … + β_kx_k + ε, is that the predicted values of y can be sometimes ________.

• A) greater than 0 and less than 1
• B) at least 0 and no more than 1
• C) less than 1 but more than 0
• D) less than 0 or greater than 1

---

Definitions:

Outside Options

Alternatives available to negotiating parties, especially if current negotiations fail, influencing their bargaining power.

Believable Threat

A threat that is credible and convincing to the recipient, often used in negotiation or strategic situations.

Non-Strategic Sequential

A term not commonly recognized as a standard key term in business or strategy contexts. NO.

Labor Negotiation Game

A strategic interaction between employers and employees or their representatives regarding employment terms, often involving bargaining.