In the following regression equation, y is a binary variable: y = ₀+ ₁x₁+… _k x_k+ u In this case, the estimated slope coefficient, measures _____. A)the predicted change in the value of y when x₁ increases by one unit, everything else remaining constant B)the predicted change in the value of y when x₁ decreases by one unit, everything else remaining constant C) the predicted change in the probability of success when x₁ decreases by one unit, everything else remaining constant D) the predicted change in the probability of success when x₁ increases by one unit, everything else remaining constant

Question

Quizplus · Accepted Answer

Since y is a binary variable, the regression coefficient measures the change in the probability of success (y=1) for a one-unit increase in the corresponding predictor variable (x₁), holding all other variables constant. Therefore, the correct answer is D. A binary dependent variable is used when a regression model is used to explain a qualitative event. The dependent variable takes a value of 1 when the event takes place (success) and it takes a value of zero when the event does not take place. The coefficient of an independent variable in this case measures the predicted change in the probability of success when the independent variable increases by one unit.

In the Following Regression Equation, Y Is a Binary Variable