When having a choice of which estimator to use with a binary dependent variable, use
A)probit or logit depending on which method is easiest to use in the software package at hand.
B)probit for extreme values of X and the linear probability model for values in between.
C)OLS (linear probability model)since it is easier to interpret.
D)the estimation method which results in estimates closest to your prior expectations.

Question

Quizplus · Accepted Answer

Probit and logit models are both appropriate for binary dependent variables, and the choice between them often depends on convenience or ease of use within a particular software environment. Both models provide similar results, especially for predictions within the range of the data.

When Having a Choice of Which Estimator to Use with a Binary