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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 + … + βkxk + ε, is that the predicted values of y can be sometimes ________.


Definitions:

Foreign Operation

A subsidiary, associate, joint venture, or branch of a company that is located in a country different from the one where the parent company operates.

Presentation Currency

The currency in which a company's financial statements are presented.

Non-Monetary Items

Assets or liabilities that are not easily quantified in monetary terms, such as goodwill, patents, or real estate.

Functional Currency

The currency of the primary economic environment in which the company predominantly generates and expends cash.

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