Cryptocurrency Q&A
What is the assumption of probit?
What is the assumption of probit?
KatanaGlory
Sat Oct 12 2024
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7 answers
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I am studying statistical models and came across probit model. I want to understand the fundamental assumption behind this model. What does the probit model assume about the data and the relationship between variables?
7 answers
Dario
Mon Oct 14 2024
The model provides a way to estimate the probability of the outcome being 1 given the values of the independent variables.
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BlockchainBaron
Mon Oct 14 2024
In this model, the dependent variable can only take two possible values: 0 or 1.
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Martina
Mon Oct 14 2024
The primary assumption underlying probit regression is that the errors in the binary data follow a normal distribution.
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Alessandra
Mon Oct 14 2024
This assumption allows for the use of probability theory in modeling the relationship between the dependent and independent variables.
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MysticGalaxy
Mon Oct 14 2024
Probit regression is particularly useful in situations where the outcome of interest is categorical, such as success or failure, yes or no, etc.
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