The coefficient estimates from the probit model are
A)true marginal effects.
B)non-negative.
C)not true marginal effects.
D)biased.

Question

Quizplus · Accepted Answer

The coefficient estimates from the probit model are not true marginal effects since they measure the change in the latent variable associated with a one-unit change in the independent variable, holding all other variables constant. To obtain the true marginal effects, one needs to evaluate the partial derivative of the cumulative distribution function with respect to the independent variable at the mean values of the regressors. Therefore, the coefficient estimates cannot be interpreted directly as the probabilities of the dependent variable taking the value of one.

The Coefficient Estimates from the Probit Model Are