The major flaw of the linear probability model is that
A) the actuals can only be 0 and 1, but the predicted are almost always different from that.
B) the regression R2 cannot be used as a measure of fit.
C) people do not always make clear-cut decisions.
D) the predicted values can lie above 1 and below 0.
Ans: D) the predicted values can lie above 1 and below 0.
Economics
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Answer the following statement true (T) or false (F)
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