Hello;
I have a bivariate probit of the form
(x = y z) ( y= a b)
x is a rare event ; that is there are way more negative than positive.
y is also a rare event .
The bivariate model will get a very high accuracy by setting all x to zero.
I have been downsampling the negative x to get a balanced set.
Question :
1) Does that make sense?
2) How to interpret the coefficients of the model ? for example the correlation between the errors "rho", how does one make sense of it after the subsampling.
3) How o i calculate ATE after subsampling?
Thanks
Ayman
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