The Major Flaw of the Linear Probability Model Is That

question 43

Multiple Choice

The major flaw of the linear probability model is that

• A)the actuals can only be 0 and 1,but the predicted are almost always different from that.
• B)the regression R2 cannot be used as a measure of fit.
• C)people do not always make clear-cut decisions.
• D)the predicted values can lie above 1 and below 0.

---

Definitions:

Tend-and-Befriend

A behavioral response to stress involving seeking social affiliation and nurturing activities to manage stressful situations.

Exclusion

The act of denying someone access to a group, activity, or resource, often based on specific criteria.

Ultimatum Game

A game theory experiment where two players decide how to divide a sum of money, with the offer possibly being rejected by the receiver.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.