In a probit model, the interpretation of the estimated effect of X1 on the probability Y=1 depends on:
A) The current level of X1
B) The current level of the other independent variables.
C) The current level of Y.
D) Both a and b

Question

Quizplus · Accepted Answer

The estimated effect of X1 on the probability Y=1 depends on the current level of X1 and the current level of the other independent variables. This is because the effect of X1 on Y is conditional on the values of the other independent variables in the model. Therefore, both options A and B are correct. The current level of Y is not relevant for the interpretation of the effect of X1.

In a Probit Model, the Interpretation of the Estimated Effect