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Hofler Quiz Binary

QuestionAnswer
Two
The probability that something occurs.
X’s are factors the _____ that probability. Affect
Dummy variables
The purpose of the Binary Choice Model is to find the _____ between a set of _____ describing the individual/organization and the _____ that the individual/organization will end up in one outcome or the other. 1) Relationship 2) Characteristics (X) 3) Probability
1) Change 2) 1 3) 0
Y
A) are faced with 2 possible outcomes B) where they end up depends upon their characteristics
Use one less binary variable than the number of categories.
LOGIT
1) Count Data 2) Qualitative responses 3) Ranking 4) Categories
The probability that something occurs (Y=1)
Do not use _____ method when evaluating a binary Choice Model. OLS
Created by: knightmatt
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