Hello,
I run regression with probit and get the table of average marginal effects. I am wondering how can I interpret the quantitative impacts of ratio (bounded) explanatory variables. For example, I have an independent variable: share of income on housing (X1) which is between 0 and 1, and its APE is 0.07 . The dependent variable is the probability of investment.
=> An increase in X1 by 1 unit leads to an increase in the average probability of investment by 7 percentage points. However, I find it odd to say that X1 increase by 1 unit as its value is bounded between 0 and 1. Do you think it is acceptable to interpret the results as above or what is a better way to interpret the results pls?
Thank you very much!