Linearity control when treating a categorical dependent variable as continous
Hello,
I am estimating firm's rating changes (each category is equally
spaced) and distribution is symmetrical, there are about 10
categories.
Instead of ordered-probit I would like to use OLS. I would like to
check and see if the deviations from the linearity are statistically
significant in the dependent variable.
Thanks,
Doruk ILGAZ
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