Hi all,
Can anybody please, explain to me the difference between expected values and
expected probability in the context of a dichotomic dependent variable?
Here is my confusion: We have a probit model (y=B0+B1x1). We draw 1000 Betas
from a normal distribution. We calculate y=B0+B1x1 using all the Betas of
the draw. So, now we have 1000 different values of y (one for each draw of
Betas). Then, we transform y to a probability using the function
1/(1+e^(-Bxi)). Now we have 1000 different probabilites. Are these
probabilities the expected probability or the expected value? If these are
the expected probabilities, howe can I get the expected values? Are the
expected values the 1000 values of y?
Best,
Viridiana R?os
617-997-2471
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