How is the average marginal effect calculated for a probit or logit model? A)taking the marginal effect at the mean of the sample B)mean marginal effects are always .5 in a binary choice model C)calculate the marginal effects for each observation,then take the mean D)take the mean of the marginal effects at the 5^th and 95^th percentile

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Quizplus · Accepted Answer

The average marginal effect in a probit or logit model is calculated by first computing the marginal effects for each observation in the sample and then taking the average of these marginal effects. This approach provides a summary measure of the effect of a unit change in the explanatory variable on the probability of the outcome, averaged across all observations.

How Is the Average Marginal Effect Calculated for a Probit