Which of the following statements is true?
A)A probit or logit model should be used for corner solution outcomes, and a Poisson regression model should be used for a binary response.
B)A Poisson regression model should be used for corner solution outcomes, and a probit or logit model should be used for a binary response.
C)A probit or logit model should be used for count variables, and a Poisson regression model should be used for a binary response.
D)A Poisson regression model should be used for count variables, and a probit or logit model should be used for a binary response.

Question

Quizplus · Accepted Answer

A Poisson regression model is appropriate for count data, while a probit or logit model is appropriate for binary outcomes. The statement about using a Poisson model for corner solutions is incorrect as Poisson regression assumes non-zero count values, while corner solutions are zero.

Which of the Following Statements Is True