In the probit model Pr(Y = 1 = Φ(β0 + β1X),Φ
A)is not defined for Φ(0).
B)is the standard normal cumulative distribution function.
C)is set to 1.96.
D)can be computed from the standard normal density function.

Question

In the probit model Pr(Y = 1  = Φ(β0 + β1X),Φ
A)is not defined for Φ(0). 
B)is the standard normal cumulative distribution function. 
C)is set to 1.96. 
D)can be computed from the standard normal density function.

Quizplus · Accepted Answer

Φ is the standard normal cumulative distribution function, which is used to calculate the probability of observing a value less than or equal to a specific point in a standard normal distribution. It ranges from 0 to 1 and can be calculated using tables or software. In the probit model, it is used to calculate the probability of the dependent variable taking a value of 1 given the values of the independent variables.

In the Probit Model Pr(Y = 1 = Φ(β0