0.5N (1, 0.5) + 0.5N (1, 0.5) b b I = 0.5Z0 + Z1 + V What happens if you run the probit on this model? How important does it seem to actually have the right distribution? 10. Reestimate these models using logit and linear probability models (no need to program them, you can use stata to do this). How dierent are the results? Does it still seem that important to have the right distribution?
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