Part V
Discrete and Restricted Dependent Variables in Econometrics
Check out www.dummies.com/extras/econometrics for a refresher of how discrete and restricted dependent variables work before heading into your next exam.
In this part . . .
Model economic outcomes that are qualitative or have limited values to address questions such as “What distinguishes a job applicant who gets hired from one who doesn’t?”
Discover how to use maximum likelihood (ML) estimation as an alternative to the OLS technique so you can choose values for your estimated parameter(s) that maximize the probability of observing the values contained in your data sample.
Deal with limited dependent variables, namely censored dependent variables and truncated dependent variables, to prevent one or more of the traditional regression model assumptions from failing.
Find out how to implement econometric techniques ...
