6. The following two regression models are Probit and Logit respectively: P(Y-112)-(B+B₁ × X₁ +₂× X₂) P(Y-11)-F(B+B xX₁ + ₂ × X₂) (a) what functions do and Frepresent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 17 (c) Sketch a graph of the Y-(Z) function. (Z on the horizontal axis, Y on the vertical axis) (4) What estimation method is used t stimate the coefficients in a Probit Logit model? (e) What are the two measures of fit for models with binary dependent variables?
6. The following two regression models are Probit and Logit respectively: P(Y-112)-(B+B₁ × X₁ +₂× X₂) P(Y-11)-F(B+B xX₁ + ₂ × X₂) (a) what functions do and Frepresent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 17 (c) Sketch a graph of the Y-(Z) function. (Z on the horizontal axis, Y on the vertical axis) (4) What estimation method is used t stimate the coefficients in a Probit Logit model? (e) What are the two measures of fit for models with binary dependent variables?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 4E
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Please answer c, d,e
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