Consider the following model: Y i = e 1+2Xi / (1 + e 1+2Xi ) As it

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Consider the following model:

Yi = eβ1+β2Xi / (1 + eβ1+β2Xi)


As it stands, is this a linear regression model? If not, what “trick,” if any, can you use to make it a linear regression model? How would you interpret the resulting model? Under what circumstances might such a model be appropriate?

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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