The following problems could be analyzed using probit and logit estimation with the exception of whether or not
A)a college student decides to study abroad for one semester.
B)being a female has an effect on earnings.
C)a college student will attend a certain college after being accepted.
D)applicants will default on a loan.

Question

Quizplus · Accepted Answer

Probit and logit models are used for binary dependent variables, where the outcome is either 0 or 1. Choices A, C, and D involve decisions that can be modeled as binary outcomes (e.g., study abroad or not, attend a certain college or not, default on a loan or not). Choice B, however, involves analyzing the effect of being female on earnings, which is a continuous outcome, not a binary one, making it unsuitable for probit or logit analysis.

The Following Problems Could Be Analyzed Using Probit and Logit