Paper 1, Section I, J
Part II, 2015
The outputs of a particular process are positive and are believed to be related to -vectors of covariates according to the following model
In this model are i.i.d. random variables where is known. It is not possible to measure the output directly, but we can detect whether the output is greater than or less than or equal to a certain known value . If
show that a probit regression model can be used for the data .
How can we recover and from the parameters of the probit regression model?