Question

Which of the following variables would be natural outcomes for a linear probability model?

a) Dummy Variables
b) Continuous Variables
c) Binary Outcome Variables
d) Interaction Variables

Answer 1

Dummy variables, binary outcome variables, and interaction variables are natural outcomes for a linear probability model.

Step-by-step explanation:

Dummy variables, binary outcome variables, and interaction variables are all natural outcomes for a linear probability model. These variables are commonly used in regression analysis to model the relationship between a dependent variable and one or more independent variables.

For example, in a study examining the effect of a treatment on a binary outcome variable (e.g., success or failure), a dummy variable can be used to represent the treatment group, while a binary outcome variable can represent the success or failure of the outcome.

In summary, the natural outcomes for a linear probability model are: a) Dummy Variables, c) Binary Outcome Variables, and d) Interaction Variables.