12. In the binary dependent variable model, a predicted value of 0.6 means that: A) the most likely value the dependent variable will take on is 60 percent. B) given the values for the explanatory variables, there is a 60 percent probability that the dependent variable will equal one. C) the model makes little sense, since the dependent variable can only be 0 or 1. D) given the values for the explanatory variables, there is a 40 percent probability that the dependent variable will equal one. 3 13. In the probit model Pr(Y = 1|X) = (0 +1X): A) 0 cannot be negative since probabilities have to lie between 0 and 1. B) 1 cannot be negative since probabilities have to lie between 0 and 1. C) is the standard normal cumulative distribution function. D) is the standard normal density function. 14. When estimating probit and logit models: A) the F-statistics should not be used, since the models are nonlinear. B) you can still have binary variables as explanatory variables as well. C) the t-statistic should not be used for testing a single restriction. D) it is no longer true that the R2 < R2