index models

  1. M

    Generate weighted multidimensional index with Likert-data

    Dear all, I am a bit desperate and hope you can help me with my issue. I'm analyzing the economic attractiveness of several countries. To do so, I asked practitioners to evaluate 17 dimensions on a 1-5 (5 best) Likert-scale how important these dimensions are. In the next step I want to...
  2. R

    Probit: Assumption e~N(0,1), why?

    Good evening, I have got a question according the Probit-Model. In this model we always assume that the error term is standard normally distributed. I understand, that it's a reasonable assumption that the error term has expectation zero - if we did not forget important variables - and that...