L20.10 Maximum Likelihood Estimation Examples
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YouTubeMIT OpenCourseWare
L20.10 Maximum Likelihood Estimation Examples
MIT RES.6-012 Introduction to Probability, Spring 2018 View the complete course: https://ocw.mit.edu/RES-6-012S18 Instructor: John Tsitsiklis License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu
226.5K viewsApr 24, 2018
Probit Model Explained
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Probit Model (Probit Regression): Definition
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Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
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