Hi,

I don't know if anyone can help with this:

I need to run a probit regression for binary variables and there is a timing issue that I need to resolve.

As a dependent variable I have quarterly data (management special report issued Y or N) and as independent variables I have yearly data (financial year end audit opinion Y or N).

I somehow need to set the independent variable so that it equals 1 if it was Y in the year prior to the four quarters in the dependent variable column and 0 if it was N.

Dependent variable column:

Q1- year 1

Q2- year 1

Q3- year1

Q4- year1

Q1-year 2

Q2- year 2

Q3- year2

etc.

Independent variable column- Y or N :

Ending Year 1

Ending Year 2

Ending Year 3



etc.

The regression formula looks like this : Probit (dependent variable Y or N) = Independent variable (needs to equal 1 if it was Y only in the prior year).



Thanks