Question

In the binary dependent variable model, a predicted value of 0.6 means that A. the most likely value the dependent variable will take on is 60 percent. B. given the values for the explanatory variables, there is a 60 percent probability that the dependent variable will equal one. C. the model makes little sense, since the dependent variable can only be 0 or 1. D. given the values for the explanatory variables, there is a 40 percent probability that the dependent variable will equal one.

Answer 1

B. Given the values for the explanatory variables, there is a 60 percent probability that the dependent variable will equal one.

Explanation:

Given

Model: binary dependent variable

Predicted value: 0.6

Required

Interpret

The possible values of a binary dependent variable are 0 or 1.

So, a predicted value means that, the chance that the dependent variable will be 1 equals to the predicted value.

Since the predicted value is 0.6 (or 60%), this means that; there is a 60% chance that the dependent variable = 1.

Hence, option (b) is true.