6. The following two regression models are Probit and Logit respectively: P(Y-112)-(B+B₁ × X₁ +₂× X₂) P(Y-11)-F(B+B xX₁ + ₂ × X₂) (a) what functions do and Frepresent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 17 (c) Sketch a graph of the Y-(Z) function. (Z on the horizontal axis, Y on the vertical axis) (4) What estimation method is used t stimate the coefficients in a Probit Logit model? (e) What are the two measures of fit for models with binary dependent variables?
6. The following two regression models are Probit and Logit respectively: P(Y-112)-(B+B₁ × X₁ +₂× X₂) P(Y-11)-F(B+B xX₁ + ₂ × X₂) (a) what functions do and Frepresent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 17 (c) Sketch a graph of the Y-(Z) function. (Z on the horizontal axis, Y on the vertical axis) (4) What estimation method is used t stimate the coefficients in a Probit Logit model? (e) What are the two measures of fit for models with binary dependent variables?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 4E
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Question
Please answer c, d,e
![12:46
Styles
6. The following two regression models are Probit and Logit respectively:
Pr(Y 11X)
(B+B₁ × X₁ + B₂ × X)
Pr(Y-11X)-F(B+B₁ × X₁ + B₂ × X₂)
(a) what functions do and F represent?
(b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 1?
(c) Sketch a graph of the Y-(Z) function. (Z on the horizontal axis, Y on the vertical axis)
(d) What estimation method is used to estimate the coefficients in a Probit/Logit model?
(e) What are the two measures of fit for models with binary dependent variables?
Focus
X
RA B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6fb8d2d8-3257-4894-91bc-492e5f32e00a%2F4d01ba15-5967-46a7-af29-2001e8c07c50%2Fa0ucdck_processed.jpeg&w=3840&q=75)
Transcribed Image Text:12:46
Styles
6. The following two regression models are Probit and Logit respectively:
Pr(Y 11X)
(B+B₁ × X₁ + B₂ × X)
Pr(Y-11X)-F(B+B₁ × X₁ + B₂ × X₂)
(a) what functions do and F represent?
(b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 1?
(c) Sketch a graph of the Y-(Z) function. (Z on the horizontal axis, Y on the vertical axis)
(d) What estimation method is used to estimate the coefficients in a Probit/Logit model?
(e) What are the two measures of fit for models with binary dependent variables?
Focus
X
RA B
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