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.

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The area or rooms used for business activities or work, typically in a building designated for commercial or professional use.

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The difference between total revenue and explicit costs, reflecting the net income reported on financial statements.

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Profits exceeding the opportunity costs of all inputs into a business, considered a measure of efficiency and economic performance beyond just accounting profit.

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