FIGURE 15.2 A cumulative distribution function (CDF).

13John Aldrich and Forrest Nelson, op. cit., p. 26.

14As discussed in App. A, the CDF of a random variable X is simply the probability that it takes a value less than or equal to x0, where x0 is some specified numerical value of X. In short, F(X), the CDF of X, is F(X = x0) = P(X < x0).


models are (1) the logistic and (2) the normal, the former giving rise to the logit model and the latter to the probit (or normit) model.

Although a detailed discussion of the logit and probit models is beyond the scope of this book, we will indicate somewhat informally how one estimates such models and how one interprets them.

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Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

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