P

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).

CHAPTER FIFTEEN: QUALITATIVE RESPONSE REGRESSION MODELS 595

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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