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Which of the Following Is NOT a Problem That May

Question 3

Multiple Choice

Which of the following is NOT a problem that may arise from estimating a binary dependent variable in an OLS regression equation rather than a logistic regression equation ______.


A) increased Type II error rate
B) predicted values of the dependent variable that extend beyond the bounds of 0 or 1
C) the functional form of how the independent variable affects the dependent variable may not be linear
D) the error terms (residuals) are not normally distributed and thus violate the assumption of homoscedasticity

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