In the expression Pr(Y = 1 = ?(?0 + ?1X),
A) (?0 + ?1X) plays the role of z in the cumulative standard normal distribution function.
B) ?1 cannot be negative since probabilities have to lie between 0 and 1.
C) ?0 cannot be negative since probabilities have to lie between 0 and 1.
D) min (?0 + ?1X) > 0 since probabilities have to lie between 0 and 1.
Answer: A) (?0 + ?1X) plays the role of z in the cumulative standard normal distribution function.
You might also like to view...
Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $0 B) $200 million C) $300 million D) $500 million E) $800 million
Which of the following is NOT true regarding monopoly?
A) Monopoly is the sole producer in the market. B) Monopoly price is determined from the demand curve. C) Monopolist can charge as high a price as it likes. D) Monopoly demand curve is downward sloping.