Binary dependent variables e Recall the linear probability model, which can be written as P(=1x)=o+xB va drawback to the linear probability model is that predicted values are not constrained to be between 0 and 1 e An alternative is to model the probability as a function, G(Bo +xB), where 0<G(k<1 Economics 20- Prof andersonEconomics 20 - Prof. Anderson 2 Binary Dependent Variables Recall the linear probability model, which can be written as P(y = 1|x) = b0 + xb A drawback to the linear probability model is that predicted values are not constrained to be between 0 and 1 An alternative is to model the probability as a function, G(b0 + xb), where 0<G(z)<1