Consider the class of binary models (4.8) and (4.9). Suppose that the standard cdf D corresponds to…

Consider the class of binary models (4.8) and (4.9). Suppose that the standard cdf D corresponds to a probability density function # that is symmetric around 0.

a. Show that x at which π(x) = 0.5 is x = – α/β.

b. Show that the rate of change in π(x) when π(x) = 0.5 is β∅(0). Show this is 0.25β for the logit link and β/V2π- (where it = 3.14 …) for the probit link.

c. Show that the probit regression curve has the shape of a normal cdf with mean —α/β and standard deviation 1/ |β |.

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today!