A marginal effect indicates
A)the predicted value of the dependent variable,holding all else constant.
B)the effect that a one-unit change in the independent variable is expected to have on the dependent variable,holding all else constant.
C)the effect that a one-unit change in the dependent variable is expected to have on the independent variable,holding all else constant.
D)the predicted value of the dependent variable when the independent variable equals 0,holding all else constant.

Question

Quizplus · Accepted Answer

A marginal effect measures the change in the dependent variable for a unit change in the independent variable while holding all other variables constant. Therefore, the best choice is B, which states that a marginal effect represents the effect that a one-unit change in the independent variable is expected to have on the dependent variable, holding all else constant.

A Marginal Effect Indicates