Cryptocurrency Q&A
What is the disadvantage of LPM model?
What is the disadvantage of LPM model?
SunlitMystery
Fri Oct 11 2024
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6 answers
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I'm exploring the LPM model and while it seems promising, I'm concerned about its potential downsides. Specifically, I want to understand what the main disadvantage of using the LPM model is.
6 answers
CryptoProphet
Sun Oct 13 2024
The LPM, a statistical model commonly found in textbooks, possesses a significant limitation that is often overlooked.
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SoulWhisper
Sun Oct 13 2024
This limitation revolves around the inherent nonlinearity in the true relationship between a binary outcome and a continuous explanatory variable.
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SumoMighty
Sun Oct 13 2024
The LPM assumes a linear relationship between these two variables, which in many real-world scenarios, does not accurately reflect the complexity of the data.
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ethan_carter_engineer
Sat Oct 12 2024
This assumption can lead to misleading conclusions and inaccurate predictions, as it fails to capture the nuances and intricacies of the true relationship.
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DondaejiDelightfulCharmingSmile
Sat Oct 12 2024
To overcome this limitation, researchers and practitioners often turn to more sophisticated models that can accommodate nonlinearity, such as logistic regression or generalized additive models.
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