Probit coefficients are typically estimated using
A)the OLS method
B)the method of maximum likelihood
C)non-linear least squares (NLLS)
D)by transforming the estimates from the linear probability model

Question

Quizplus · Accepted Answer

Probit coefficients are estimated using the method of maximum likelihood. This approach involves maximizing the likelihood function, which represents the probability of observing the data given the model parameters. The likelihood function is nonlinear, so the coefficients cannot be estimated using OLS or NLLS. While probit coefficients can be transformed from the linear probability model, this is less common and less efficient than estimating the coefficients directly using maximum likelihood.

Probit Coefficients Are Typically Estimated Using