Hi
I am trying to learn about regressions with binary as the dependent variable. I have tried to figure out something but has gotten a little bit lost in my interpretation. Would someone please check if this is correct?
I would be extremely grateful for an answer. Thanks.
I am trying to learn about regressions with binary as the dependent variable. I have tried to figure out something but has gotten a little bit lost in my interpretation. Would someone please check if this is correct?
- With Probit and Logit Models, we only interpret the coefficients as Yes/No, True/Not True. There is not much to interpret in the coefficients other than that.
- LPM is supposed to give us coefficients that can be interpreted as the percentage probabilty. This often fails, because of the models weakness. Hence, LPM is not a model thats widely used anymore.
I would be extremely grateful for an answer. Thanks.