EC709 - Econometrics II - Econometrics Assignment

Assignment Task

Questions 

1. What are the shortcoming of linear probability model?

2. What do LPM,logit and Probit model have in common?

3. Given CDF of logistic distribution Pr(Ý = 1) = 1 1+ë −(ßò+ßòX1+ßó?

4. How would you interpret the slope (marginal effect)?

5. Find the predicted probability of admission for an applicant who has 650 and 570 test score on quantitative and verbal, respectively?

6. What is endogeneity?

7. What are the causes and consequences of endogeneity problem?

8. Explain what simultaneity bias mean?

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