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Section 3

Section 3. Probit and Logit Models. Dichotomous Data. Suppose data is discrete but there are only 2 outcomes Examples Graduate high school or not Patient dies or not Working or not Smoker or not In data, y i =1 if yes, y i =0 if no. How to model the data generating process?.

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Logit/Probit Models

Logit/Probit Models. Making sense of the decision rule. Suppose we have a kid with great scores, great grades, etc. For this kid, x i ? is large. What will prevent admission? Only a large negative ? i What is the probability of observing a large negative ? i ? Very small.

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Hsgrad somecol college worka - PowerPoint PPT Presentation

Section 3

Logit/Probit Models