Question: 7 Suppose the dependent variable is not a ratio or interval scale variable but is a nominal scale variable, taking values of 1 and O.

7 Suppose the dependent variable is not a ratio or interval scale variable but is a nominal scale variable, taking values of 1 and O. Can we still apply the usual OLS techniques to estimate such models? If not, what are the alternatives? The answer to these questions can be found in Chapter 8, where we discuss the logit and probit models, which can handle a nominal dependent variable.

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