In Chapter 4 we considered regression models where the response variable depends linearly on several explanatory variables In this case, was a quantitative variable; that is, it could take on any real value, and the regressors – which could be quantitative or qualitative – affected only its mean.
In this chapter we shall consider more general situations in which the regressors affect the distribution function of However, to retain parsimony, it is assumed that this distribution depends on them only through a linear combination where the s are unknown.
We shall first consider the situation when is a 0–1 variable.
7.1 Binary response regression
Let be a 0–1 ...