​The Difference Between the LPM Model and the Logit and Probit

question 15

Multiple Choice

​The difference between the LPM model and the logit and probit models is that:

• A)​the LPM assumes constant marginal effects for all the independent variables, while the logit and probit models imply diminishing magnitudes of the partial effects.
• B)​the LPM assumes constant marginal effects for some of the independent variables, while the logit and probit models imply diminishing magnitudes of the partial effects.
• C)​the LPM assumes constant marginal effects for the dependent variable, while the logit and probit models imply diminishing magnitudes of the partial effects.
• D)​the LPM assumes different marginal effects for all independent variables, while the logit and probit models imply diminishing magnitudes of the marginal effects.

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Definitions:

Intended Strategy

The formulated plan.

Realized

Describes outcomes or results that have been achieved or attained, especially in the context of goals, objectives, or potential.

Intentional

Intentional refers to doing something with purpose or on purpose, indicating actions that are deliberate and planned.

Restructuring Strategy

A corporate management term referring to the act of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or better organized for its present needs.