Revision as of 14:28, 20 August 2023 edit DerMuch (talk \| contribs) 9 edits m add one more step in derivation of conditional expectation ← Previous edit		Revision as of 22:11, 3 December 2023 edit undo Thatsme314 (talk \| contribs) Extended confirmed users 7,865 edits m →Latent-variable formulation: rm space Next edit →
Line 13: ==Latent-variable formulation== More formally, the LPM can arise from a latent-variable formulation (usually to be found in the econometrics literature <ref name=Amemiya>{{cite journal \|last=Amemiya \|first=Takeshi \|year=1981 \|title=Qualitative Response Models: A Survey\|journal=Journal of Economic Literature \|volume =19 \|number =4 \|pages=1483–1536 }}</ref>), as follows: assume the following regression model with a latent (unobservable) dependent variable: : <math>y^* = b_0+ \mathbf x'\mathbf b + \varepsilon,\;\; \varepsilon\mid \mathbf x\sim U(-a,a).</math>

Linear probability model: Difference between revisions