Tobit Model
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Tobit Model

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High Quality Content by WIKIPEDIA articles! The Tobit Model is an econometric, biometric model proposed by James Tobin (1958) to describe the relationship between a non-negative dependent variable yi and an independent variable (or vector) xi.The model supposes that there is a latent (i.e. unobservable) variable y_i^ . This variable linearly depends on xi via a parameter (vector) which determines the relationship between the independent variable (or vector) xi and the latent variable y_i^ (just as in a linear model). In addition, there is a normally distributed error term ui to capture random ...