When a decision maker has to choose between two mutually exclusive outcomes an econometrician may choose to use a(n)
A)binary choice model
B)ECM
C)random effects model
D)fixed effects model

Question

Quizplus · Accepted Answer

A binary choice model is designed to analyze situations where there are only two possible outcomes, such as choosing between two mutually exclusive options. This type of model is often used in decision making contexts, making it the best choice for this scenario. ECM, random effects model, and fixed effects model are not relevant to this specific situation.

When a Decision Maker Has to Choose Between Two Mutually