When Having a Choice of Which Estimator to Use with a Binary

question 20

Multiple Choice

When having a choice of which estimator to use with a binary dependent variable, use

• A)probit or logit depending on which method is easiest to use in the software package at hand.
• B)probit for extreme values of X and the linear probability model for values in between.
• C)OLS (linear probability model)since it is easier to interpret.
• D)the estimation method which results in estimates closest to your prior expectations.

Apply cash management models (BAT and Miller-Orr) to determine optimal cash balances and transfer strategies.

Evaluate the financial implications of cash flow management decisions on business operations.

Calculate the cost-effectiveness of lockbox systems considering bank charges and reduced collection times.

Understand the phases of the sexual response cycle and associated concepts.

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Definitions:

Variable-interval

In operant conditioning, a reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.

Fixed-ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses.

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, making it a powerful maintenance strategy.

Conditioned Reinforcer

A stimulus that has acquired the capacity to strengthen desirable behavior through its association with a primary reinforcer.