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Question: question 5 20p discrete choice models a what is a...

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Question 5 (20p): Discrete choice models a. What is a binary choice model? What do we eatimate? Discribe the linear, probit and logit models. b. Derive the formula for the probit model for a consumer buying/not buying a product , based on product characteristics. c. In the linear and probit models, how would you calculate the predicted value at the value Xmean d. In estimating the linear binary choice model, what can we say about heteroscedasticity? given estimated coefficients? Provide a formula and explain the components. od luck!
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