CHAPTER 14
ANALYSIS WITH A ICHOTOMOUS CATEGORICAL DEPENDENT VARIABLE
LEARNING OBJECTIVES
• Understand the concepts associated with the dichotomous dependent variable
• Understand and use the Logit model for estimating dichotomous dependent variables
• Enable and use the Excel Solver add-in
• Understand the significance of individual coefficients
• Understand the differences between OLS, WLS, and Logit
The chi-square statistic deals with categorical data in both the independent and the dependent variables. However, the general limitation is that only two variables—one independent and one dependent, or, occasionally, two independent and one dependent—can be analyzed at one time. Furthermore, the chi-square is limited by the need to retain relatively ...

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