'Interpretation of a binary regression plot
I'm new to R and I created an avplot of a linear binary regression. I was wondering how do I interpret the regression residuals in the corner like that?
Would you say it follows a heteroskedastic pattern?
Thanks!
Note: My binary formatting is Sex: Male (0), Female (1), Employment: Employed (1), unemployed (0)
Solution 1:[1]
Linear probability models follow a heteroskedastic pattern by construction. You'll have to use robust standard errors.
Sources
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Source: Stack Overflow
Solution | Source |
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Solution 1 | MaartenRenap |