I am working on a project for university statistics class and have been building an LPM... the book I own barely mentions LPM. With that being said I would much appreciate any guidance on what tests to run in determining if my LPM is a decent model.
- I know the "Percentage of Correct Predictions" (the Count R2) helps out a lot, and have already used this!
- I know you cant use the F-Statistic Test.
- I know testing for multi collinearity works, which I have done, and this has been fruitful.
- I have been told the Ramsey reset test doesn't work... is this true?
- I have also been told the rvf plot wont work... is this true?
- I am in the understanding heteroscedasticity doesn't apply to LPM, but don't know why.
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