Which of the following is a step that can remedy an interpolation/extrapolation identification problem?
A) Use a probit/logit model to alleviate the data gaps.
B) Collect more/alternative data to close the data gap, extent of the data.
C) Use two-stage least squares to interpolate/extrapolate.
D) Use a fixed effects model.

Question

Quizplus · Accepted Answer

The best way to remedy an interpolation/extrapolation identification problem is to collect more/alternative data to close the data gap and extend the data. This will make the interpolation/extrapolation more accurate and reliable. Using a probit/logit model, two-stage least squares or a fixed effects model may not solve the identification problem and could potentially worsen the accuracy of the result.

Which of the Following Is a Step That Can Remedy