Probit Model

Question 1

Similarities with Logit model

Answer 1

• CDF’s are very similar (uses also a CDF of a normal distribution)
• Results are often very similar

Question 2

Differences with Logit Model

Answer 2

• for a logit model probabilities are easier to calculate

- interpretation of a logit model is easier

Question 3

Logit or Probit?

Answer 3

Logit often preferred due to mathematical convenience.

Question 4

Estimation via…

Answer 4

Maximum likelihood

Question 5

Which distributions?

Answer 5

CDF of a standard normal distribution

Question 6

Interpretation

Answer 6

Marginal effects most easiest.