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Econometrics

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LPM vs Basic OLS

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The main difference between the Linear Probability Model (LPM) and a basic linear regression model is ...

A

The LPM's dependent variable is a dummy variable.

B

The LPM's independent variables are dummy variables.

C

The LPM is not estimated via Ordinary Least Squares (OLS).

D

The LPM does not allows quadratic terms as independent variables.