Probit Model (Probit Regression): Definition
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Probit Model (Probit Regression): Definition
What is a probit model? Simple definition in plain English. Examples of when to use a probit regression. Similar methods explained.
Sep 26, 2016
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Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
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SOLVED: The table below presents the results of estimating a Linear Regression (LR) model, a Logit model, and a Probit model for a binary dependent variable, y, using the explanatory variables x, m, m x, and a constant. Here m is a dummy (binary) variable, and x is continuously distributed.(1) (2) Regressors LPM Logit x 0.468 3.772(3) Probit 2.192m 0.292 (0.0393)m x -0.0172 0.0465constant 0.412 (0.0322)2.467 1.436 (0.344) (0.191) 0.487 0.258 (0.817) (0.434) -0.645-0.375 (0.240) (0.137) 380 380(0
SOLVED: The table below presents the results of estimating a Linear …
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