Suppose a linear probability model yields a predicted value of (Y) that is equal to 1.3. Explain

Question:

Suppose a linear probability model yields a predicted value of $Y$ that is equal to 1.3. Explain why this is nonsensical.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

Question Posted: Apr 30, 2024 02:01 AM

See More Questions

This exercise should be done two ways: by hand and using technology where possible Let 3 B = 0-1 X1w A = r 4 Evaluate the following. A(B + C) 11
The new line character is utilized solely as the last person in each message. On association with the server, a client can possibly (I) question the situation with a client by sending the client's...
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
In the accompanying Sales Transactions data, use Excel's filtering capability to extract a. all orders that used Paypal. b. all orders under $100. c. all orders that were over $100 and used a credit...
On January 2, 2014, P Company, a U.S.-based company, acquired for 2,000,000 francs an 80% interest in SFr Company, a Swiss company. On January 2, 2014, SFr Company reported a retained earnings...
Siena Industries (a sole proprietorship) sold three 1231 assets during 2013. Data on these property dispositions are as follows: a. Determine the amount and the character of the recognized gain or...
True or False. The damping ratio of a vibrating system can be found from the Bode diagram.
On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary...
Discuss the three main challenges you will need to consider and explain how they should be applied in design thinking and considering a viable International Business Idea.
In Table 11.2, the estimated coefficient on black is 0.084 in column (1), 0.688 in column (2), and 0.389 in column (3). In spite of these large differences, all three models yield similar estimates...
In a study of the effect on earnings of education using panel data on annual earnings for a large number of workers, a researcher regresses earnings in a given year on age, education, union status,...
Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company...
Currently, there are 4227 Walmart stores in the United States and another 3210 stores outside of the United States. a. Are the numbers of Walmart stores discrete or continuous? b. What is the level...
The CBS News station in New York City often obtains opinions by interviewing neighbors of a person who is the focus of a news story. Identify which of these types of sampling is used: random,...
A bar chart and a Pareto chart both use bars to show frequencies of categories of categorical data. What characteristic distinguishes a Pareto chart from a bar chart, and how does that characteristic...
The Nurses Health Study was started in 1976 with 121,700 female registered nurses who were between the ages of 30 and 55. The subjects were surveyed in 1976 and every two years thereafter. The study...
After construction of a relative frequency distribution summarizing the times that males spend each day thinking about females, what should be the sum of the relative frequencies?
What are mass and mole fractions?
Suppose a population of bacteria doubles every hour, but that 1.0 x 106 individuals are removed before reproduction to be converted into valuable biological by-products. Suppose the population begins...
Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering...
Sol, Inc. manufactures and sells solar chargers for $60 each. Variable costs are $40 per unit, and fixed costs total $120,000. How many solar chargers must Sol sell to earn a net income of $280,000?
Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering...

Suppose a linear probability model yields a predicted value of (Y) that is equal to 1.3. Explain

Question:

Step by Step Answer:

In a linear probability model the predicted values of Y should always fall wi...View the full answer

Introduction To Econometrics

Students also viewed these Business questions