Which of the following is an appropriate way to interpret a coefficient on a continuous independent variable (X1) from a probit model?
A) Calculate the difference in fitted values when the variable is at its actual value and increased by a standard deviation, holding all other variables at their actual values.
B) Standardize each observation by dividing each observation by the standard deviation.
C) The coefficient indicates how much a one unit increase in X1 changes the predicted probability.
D) Use a latent variable.

Question

Quizplus · Accepted Answer

In a probit model, the coefficients are not directly interpretable as changes in probability. Instead, you can calculate the change in fitted values (probabilities) by changing the independent variable by a standard deviation, holding other variables constant.

Which of the Following Is an Appropriate Way to Interpret