Probit model explained: regression with binary variables (Excel)
24:22
YouTubeNEDL
Probit model explained: regression with binary variables (Excel)
How to perform regression analysis when your dependent variable is categorical or binary? How to predict whether the borrower repays their loan, forecast the next recession, or estimate whether a student passes or fails the exam? The probit model (or probit regression) comes to the rescue! Today we will learn how to estimate probit model ...
11.5K viewsFeb 17, 2021
Probit Model Explained
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Probit Model (Probit Regression): Definition
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statisticshowto.com
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Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
numerade.com
Feb 14, 2020
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