where F—1 is the inverse of the normal CDF. What all this means can be made clear from Figure 15.4. In panel a of this figure we obtain from the ordinate the (cumulative) probability of owning a house given I* < Ii, whereas in panel b we obtain from the abscissa the value of Ii given the value of Pi, which is simply the reverse of the former.
But how do we actually go about obtaining the index Ii as well as estimating ft1 and ft2? As in the case of the logit model, the answer depends on whether we have grouped data or ungrouped data. We consider the two cases individually.
Was this article helpful?
Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.