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Re: st: probit
You should not use probit (or logit). Treat your dependent variable as continuous, ranging between 0 and 1. To linearize the equation, create a new variable, ln[PIT/(1-PIT)] and treat that as a dependent variable. This will work as long as you don't have values in which PIT is 0 or 1. If you do, you may need to use a different transformation.
- David Greenberg, Sociology Department, New York University
----- Original Message -----
From: Hadiye Aslan <email@example.com>
Date: Thursday, June 17, 2004 4:06 pm
Subject: st: probit
> I have a dependednt variable "probability of informed trading"
> (PIT) and I
> want to find the determinants of this variable. Since PIT is a
> probability i
> thought i need to run Probit regressions. The problem is that I
> have around
> 40,000 firm-years and PIT can take any value betwen 0 and 1 in
> each of these
> firm-years. The probit examples that i saw usually have more than
> 2 and less
> than 10 categories. But, in my case i would say i have around 40,000
> categories.. how do i deal with this problem?
> Once i do the probit analysis in a right way how could I find the
> I would be more than grateful, if soemone could help me.
> <')" >firstname.lastname@example.org>
> * For searches and help try:
> * http://www.stata.com/support/faqs/res/findit.html
> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
* For searches and help try: