In the following regression equation, y is a binary variable: y = ₀+ ₁x₁+… _k x_k+ u In this case, the estimated slope coefficient, measures _____. A)the predicted change in the value of y when x₁ increases by one unit, everything else remaining constant B)the predicted change in the value of y when x₁ decreases by one unit, everything else remaining constant C)the predicted change in the probability of success when x₁ decreases by one unit, everything else remaining constant D)the predicted change in the probability of success when x₁ increases by one unit, everything else remaining constant

Question

Quizplus · Accepted Answer

Since the dependent variable y is binary (i.e. takes on values of 0 or 1), the estimated slope coefficient measures the predicted change in the probability of success (i.e. y=1) when the independent variable x₁ increases by one unit, holding all other variables constant. Therefore, the correct choice is D.

In the Following Regression Equation, Y Is a Binary Variable