INTRODUCTION TO ECONOMETRICS II ECO 306 NOUN 139 a) Give an interpretation of the OLS regression and explain why OLS is not a satisfactory estimation method for this kind of model. b) With
reference to the diagram below, discuss the variation
of the marginal effect of the ASVABC score implicit in the logit regression and compare it with that in the OLS regression.
c) Sketch the probability and marginal effect diagrams for the OLS regression and compare them with those for the logit regression. (In
your discussion, make use of the information in the first paragraph of this question)
5.2.7.0 REFERENCES FURTHER READING Dominick, S, & Derrick, R. (2002).
Theory and problems of statistics and econometrics.Schaum‟s Outline Series.
Dougherty, C. (2007).
Introduction to econometrics.
Oxford University Press, USA
Stock, J. H, & Watson, MW. (2015).
Introduction to econometrics. Pearson.
