Aside from the sample being a random sample from the target population, and the latent variable model determining function is correct, what critical assumption guarantees the consistency of the maximum likelihood probit and logit estimates for the coefficients?
A) The sample size is large.
B) The model errors and the treatment variables are independent.
C) The predictions need to be between zero and one.
D) The coefficients are jointly statistically significant.

Question

Quizplus · Accepted Answer

The independence assumption between the model errors and treatment variables is critical for consistency of maximum likelihood probit and logit estimates. This assumption ensures that the estimates are not biased and that the model is correctly specified. The other options are not as directly related to guaranteeing consistency of the estimates.

Aside from the Sample Being a Random Sample from the Target