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Questions › UGC-NET › UGC-NET 2023 › Q42
2 marksEconometrics › Binary-choice and time-series models › Binary-choice models: linear probability, logit and probitHardabout 2 min

UGC-NET 2023 Question 42: Binary-choice and time-series models

Which of the following statements are not true for the Linear Probability Model (LPM)?

(A) The conditional probability of an event given X is a linear function of X.

(B) The estimated conditional probability lies between 0 and 1.

(C) The error term is homoscedastic.

(D) R^2 is a good measure of goodness of fit.

Choose the correct answer from the options given below:

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Answer and worked solution

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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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Question from the UGC-NET 2023 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.