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Questions › GATE › GATE 2024 › Q63
2 marksEconometrics › Binary-choice and time-series models › Binary-choice models: linear probability, logit and probitModerateabout 3 min

GATE 2024 Question 63: Binary-choice and time-series models

The estimated results of a Probit model is given in the table below, where YYY is a binary variable taking the value either 0 or 1, and XXX is an integer. The probability that Y=1Y=1Y=1 when X=30X=30X=30 is ______ (rounded off to two decimal places).

VariableCoefficientStandard ErrorZ-StatisticProbability
Constant-0.0640.399-0.1610.871
X0.0290.0102.9160.003

Answer and worked solution

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Plain-text version

The estimated results of a Probit model is given in the table below, where Y is a binary variable taking the value either 0 or 1, and X is an integer. The probability that Y=1 when X=30 is (rounded off to two decimal places). | Variable | Coefficient | Standard Error | Z-Statistic | Probability | Constant | -0.064 | 0.399 | -0.161 | 0.871 | X | 0.029 | 0.010 | 2.916 | 0.003 |

Binary-choice and time-series models has come up 14 times in 2 exams since 2023.

What this question tests

This question is on Binary-choice models: linear probability, logit and probit, part of Binary-choice and time-series models in Econometrics.

Models for an outcome that is yes or no, and how to read their results.

TestStop has 5 past-paper questions on this subtopic.

Take this paper as a timed mockMore on Binary-choice models: linear probability, logit and probit

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